Bullion Holding Onto Recent Gains, Watch US PMIs

Gold is holding onto its gains from recent days and has moved higher today by 0.2% to $1934.05/oz, close to its intraday high of $1937.14, as the USD is weaker. It reached a low of $1911.45 on Monday. Trend conditions for gold remain bullish and initial resistance is at Friday’s high of $1937.60.

• The fear of a recession in the US and expected slowing in Fed tightening has supported the rally in gold prices. But analysts are warning that profit taking could derail the rally. (Dow Jones)
• Later the US preliminary PMIs and the Richmond Fed manufacturing index for January are released. After the soft retail sales data, weak PMIs are likely to increase US slowdown concerns and drive a further rally in gold.