What’s Flowing: Gold Short (CONTRACTION?)

Gold futures are displaying a bearish trend as margins compress alongside a price decline. This contraction suggests a short-term downside continuation, making it a crucial moment for traders to monitor levels for potential retracement or further drops.

Key Observations:

1. Price Action: Gold is trading near the lower boundaries of a consolidation zone, with resistance levels firmly capping upward moves.

2. Compression in Margins: As margins tighten, the market indicates decreasing volatility, creating a conducive environment for strategic short positions.

Hedge Opportunity:

For traders holding long Gold positions, hedging against further downside risk is now a practical solution. My Gold/Silver Inter-Market Spread Trading PAMM account offers a robust strategy to manage exposure and optimize returns through inter-market hedging techniques.

Feel free to reach out to learn more about how to diversify and protect your Gold investments with minimal risk.


Reach out for more information on the Gold/Silver Ratio Hedge!