Gold Intraday: All Eyes on US First Quarter GDP and Fed
George Lam April 29, 2020 4:23 AM
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
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