Global macro overview for 01/03/2016:
The PMI Manufacturing data from China were released overnight and it looks like the activity in China's manufacturing sector weakened in February to the level of 49.0 points ( 49.4 expected), its lowest level in over four years. The PMI has remained below 50 points level for seven consecutive months. The weak PMI data was partly due to seasonal effects, with a week-long Lunar New Year holidays keeping much of the country closed. Analysts claim that markets should wait until March to get a more precise picture of China's production. In conclusion, this another set of weak data is reinforcing the view for more monetary stimulus as the world's second biggest economy continues to struggle.
Weak data from China are making investors nervous and more eager to invest in safe heaven assets like gold. This might be the reason why gold prices are still raising steadily. From the technical picture on H4 time frame, we might conclude that gold bulls might want to push the price event higher above the 1263 level. Bulls are still in full control of this market and as long as the level of 1191 is violated the uptrend will continue.
