I am short on gold, price has reached a critical reversal point at the 1720 per ounce level.

Two areas of resistance above offer an adequate backstop for a stop and a disaster stop placement.

Gold has been seeing declines in the last several months and is still in a technical downtrend; the current movement suggests a retracement is in play.

From a fundamental perspective, risk-on behaviour in financial markets has been growing, prompting more and more traders to look to alternative yield and dividend-paying instruments.

Gold ETFs have seen large outflows, further providing evidence to this situation.

The question remains: is it gold that is overvalued, or silver is undervalued? I have more bias towards the former than the latter.

XAUUSD - Short

Mar 10 2021

Stop Loss -0.56%

Holding time 8hr

1711.97

Entry price

1721.49

Stop loss price

2