Gold and silver appear to be starting sharp sub-cycle corrections with today's sudden plunge in the price of both metals. Early in the day gold prices broke below our stop loss level of $1240 so traders may now be out of their long positions. If not, it is probably a good idea to get out now. Prices are closing back above $1240 at the moment, but could easily fall lower over the next few days. We can pull out now with a very small loss of < 1%. There is still a strong reversal zone specifically for precious metals coming up later this week and early next week. It looks like there is a good chance that prices will fall into that reversal as this current sub-cycle correction could be very steep (but probably brief). Depending on how far gold (and silver) prices get, we might buy again at the end of the week or early next week. We don't want to see gold fall below $1214, however, as that would suggest the overall trend is turning bearish. Directional momentum in gold is currently mixed bullish and bearish, but silver is nearly 100% bearish. This makes a strong case for the bearish view right now. Selling all long positions in gold today and still out of silver.