Gold and silver prices are plummeting today. We were expecting this correction but were also expecting it to be more severe for silver with the assumption of that metal's final medium-term cycle bottom being due soon with gold already starting a new medium-term cycle with its low of $1281 on March 7. That still may be the case, but today's steep drop in gold has broken below some important short-term support lines, and this could mean that gold is also completing an older cycle and could drop significantly lower. Since gold is now at or close to our entry point from March 4, I am going to sell my long position here with little or no loss and stand aside. We are still out of silver.
NOTE: There is a good chance one or both metals will hit their final cycle bottom(s) very soon (maybe over the next several trading days) so we may be looking to buy again rather quickly. Normally, I don't "day trade" the markets in such short time periods, but there is a possibility here of gold dropping significantly lower (perhaps to $1240) so I feel it is worth unloading our longs at the "break-even" point and wait for a bottom in both metals. (Our original stop loss for this trade was $1280, but we are pulling out a little earlier because of several short-term bearish signals).