Gold Intraday: All Eyes on US First Quarter GDP and Fed
George Lam April 28, 2020 11:23 PM
Health experts warned that reopening economy without meeting criteria could prolong the coronavirus outbreak, U.S. GDP and Fed in focus...
The magnitude of coronavirus impact on the U.S. economy is hard to predict, though the market is expecting a 4.0% contraction in the first quarter. Bullish gold investors would be hoping to see a sharper decline in growth and a downbeat tone from the Fed.
From a technical point of view, there are potential signs of a rebound in spot gold price as shown on the 1-hour chart. It has broken above a bearish channel drawn from April 24, after forming a double-bottom near $1,692, which is also a 38.2% Fibonacci retracement of the rally began on April 21. Bullish investors might consider $1,700 as the nearest intraday support, with potential rebound targets at $1,721 and $1,730. In an alternative scenario, a break below $1,700 would be a warning that $1,692 may be threatened again.
Source: TradingView, GAIN Capital
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.