Powell's been very clear that the next move is a cut“Bears have had ample opportunity to re-take control of the trend, but ever since the low printed on the NFP report, bulls have been making their way back,” Stanley said. “This week saw a break of the falling wedge, which takes on a similar appearance as a bull flag, and this keeps the door open for continued strength next week.”
Adrian Day, President of Adrian Day Asset Management, sees the situation as fairly balanced for the coming week.
“Gold’s resilience has been very strong,” Day said, “but I suspect we will see a pullback after another assault on $2,400, so for next week I’ll go with unchanged.”
Adam Button, head of currency strategy at Forexlive.com, is concerned about Asian demand, but believes the uptrend remains in place. “Your story about the slowdown in gold buying from China has me worried, but it’s tough to argue with the price action,” he said.
“We should consider that gold quotes have been periodically updating historical highs since February,” said Alex Kuptsikevich, senior market analyst at FxPro. “We can also consider the April retreat as a correction to the area of 76.4% of the growth impulse from the minimum close of the day in February to the maximum close in April. In this case, the growth target becomes the area of $2640 (161.8% of the initial rally).”
