Source: Economic Events April 29, 2020 - Admiral Markets' Forex Calendar
When looking at Gold, the overall picture hasn't changed. The precious metal continues to trade around 1,700 USD, even though it has technically picked up with a slight bearish touch from the bearish divergence in the RSI(14) on a daily time-frame (orange).
On Wednesday the main focus will likely be on the US GDP data, and the Fed in the evening.
The GDP Growth Rate is expected to come in at -4%, mainly due to the Corona lockdown. This would indicate the first signs in terms of an economic downturn, and any print which comes in below -4% could potentially result in stronger demand for Gold.
In the evening, the Fed will announce its decision for the benchmark interest rate, and while according to the Fed Watch Tool, no change is expected, but some indications that the Fed may cut into negative territory can be seen.
But even if this won't happen, market participants will carefully watch other monetary policy moves the Fed may consider as an influence on markets and the world economy.
In general, we sustain our bullish take on Gold, favour Long engagements from a risk-reward perspective, and also from a purely technical perspective, as long as we trade above 1,440/450 USD.
If we get to see a short-term corrective move, a potential first target around 1,650 USD while a first target on the upside can be found around 1,800 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between January 24, 2019, to April 24, 2020). Accessed: April 24, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
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