The gold chart looks precarious. Here's how to profit

Key points

• Gold is at a technically precarious juncture, and the good news for you is that options market may be mispricing the risk.
• The metal is hovering near its 200-day moving average while simultaneously testing the 50% Fibonacci retracement of its prior advance, a confluence that technical traders don't take lightly.
• Compounding the bearish setup, several momentum and trend indicators have rolled over: DMI, along with triangular, weighted, and exponential moving averages, are also all pointing lower.
• The macro backdrop isn't offering much of a counterargument.
• Inflation stemming from the conflict in Iran is raising the specter of a more hawkish Fed pivot.