What happens when the latest in artificial intelligence combines forces with an over-educated lawyer turned option trader and hockey fanatic? Make a baby? No, not that ambitious. How about a gold trade?
Grok on Gold
“What are the current indicators suggesting a rise in gold prices?”
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(1) As of March 15, 2025, several indicators suggest a potential rise in gold prices. First, the expectation of U.S. Federal Reserve rate cuts is a significant driver—lower interest rates reduce the opportunity cost of holding gold, a non-yielding asset, making it more attractive to investors. Market sentiment reflects this, with speculation of cuts boosting demand.
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(2) Second, ongoing geopolitical tensions, such as conflicts in Ukraine and the Middle East, alongside U.S.-China trade disputes, are pushing investors toward gold as a safe-haven asset.
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(3) Third, central banks, particularly in emerging markets like China, India, and Russia, continue to accumulate gold at a robust pace, with purchases exceeding 1,000 tonnes annually for the past three years, supporting higher prices.
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(4) Additionally, a weakening U.S. dollar, partly due to these global dynamics and potential yuan devaluation pressures from China’s deflationary environment, enhances gold’s appeal as it’s priced in dollars.
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(5) Technical indicators also show bullish momentum: gold recently breached $3,000 per ounce, and despite some volatility, it remains above key support levels like $2,900, with moving averages trending upward. However, risks like a sharp equity market sell-off or a sudden drop in inflation could temper this rise, though current trends lean toward sustained upward pressure.
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Allan On Gold
"Geez, I thought Grok would never shut-up."
Let's start with two simple background charts, the first showing the largest inflow to gold on record and then the second reflecting the early results of same compared to some other popular asset classes. From there, a third chart, my own pattern recognition set-up that has been useful across all asset classes when making real time, real money trading decisions. Three charts, one story and a table of option bets. Bon appetite.
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---Gold inflows translate directly into GLD outperformance:
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Below is an actual trading chart from Blue Line Trading System, three trading systems that combine to create a high probability directional trade. The first step is to determine the dominant trend and then to measure expected moves over time within that trend basis short, intermediate and/or long term option expirations. Goal: Risk 50% to make 3X-5X-8X.
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The pattern throughout much of 2023-2024 and now continuing through 2025 is for periods of horizontal base building to be followed by vertical breakouts to higher price levels. Rinse, repeat: Classic bull market behavior.
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EW Note: The Fib extension tool is basing its projection on Waves 3 and 5 of (3), which looks to be about half-way done, suggesting this move occurring into the summer of 2025, about 100 days out. Ergo Jun 2025 monthly expiration:
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Any of these Jun strikes are ripe for exponential gains on a GLD move into the $310-$320 projected price level.
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We do this kind of analysis on everything in Blue Line Trading System, including stock indices, individual stocks, EFF's and even Bitcoin when the patterns align. The results speak for themselves, an option trading service in its 15th year of operation, with a goal of triggering trades that have limited, define risk, but also allow for exponential returns.
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Below, an example of a "short-the-market" trade from the last hour trading on Feb 21st, 2025:
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That last column to the right is our 50% trailing stop, where if hit, is a signal to exit at least half and in some cases all of a trade, locking in profits, "just in case." As for this GLD trade, our trading services are already long GLD with specific expirations and strikes, with their own respective rules for protection of profits and limitation of losses.
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Past performance is no guarantee of future results.
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