Old Resistance Becomes New support!

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Gold futures have gone parabolic this year, outperforming Stock Indices like the Nasdaq 100
and S&P 500. Can this rally continue? Or can we continue to make new all-time highs in what
may be a new “Bull Cycle” for the precious metal.

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Key Drivers:
Gold is typically sensitive to monetary and fiscal tightening. When interest rates and government
spending are at tighter levels, the metal typically struggles to push higher. However, this has not
been the case with this rally, despite the 10-year yield climbing 50 basis points YTD, the metal
has continued to break records.
There seems to be more macro influences in this rally, for example resilient US economic data,
and bets that the Fed will deliver fewer rate cuts than previously priced in are lending support to
the dollar. That is weighing on the Chinese Yuan. The PBOC is one of the largest holders of US
treasuries, and it is possible that they may be selling US treasuries to purchase even more gold.
They now hold about 72.74 million toy ounces in reserves, up from 66.50 million troy ounces
this time last year.


Technicals:
Technically, Gold futures are overbought, as the RSI shows a level above 75. Old resistance of
2082-2105 will now become new major support. This level also coincides with the 21-day EMA.
If we have a large pullback, we will want to hold this level to keep bullish momentum intact.


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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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