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As gold's tumble continues, traders bet the pain may last for two more years

Turns out all that glitters is not gold. Selling in the precious metal just keeps getting worse, with the GLD ETF now down 25% from its intraday record in February. Options trading in the fund has turned bearish in a hurry and is now pointing toward further downside.

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

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.

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