Attention today is likely to be focused on the US ISM Purchasing Managers’ Index. It has been on a downward trajectory since the spring of last year. If it remains deep in contraction territory, this could put a significant dampener on the positive economic sentiment and thereby lend tailwind to the Gold price. That said, a whole series of disappointing economic indicators would probably be needed to spark any lasting move to the upside. 

In the short term, we expect the Gold price to trend sideways around the $1,950 mark.