The action in gold and silver today tells me that we may be at the beginning of a much-needed correction in precious metals. I am SO glad that I recommended Red-Hot Global Resources subscribers grab gains in China Gold International yesterday, and that the two new recommendations I made yesterday were NOT in precious metals.Looking at this chart, you can see that the kind of down day gold had today has, in the past, led to sell-offs that last about 5 days. The 50-day moving average would be the target in that case, though we may not get there.However, MACD is not confirming the latest rally. This is usually a reliable bearish indicator, and if it plays out, points to a correction to 1324.50 or even $1292.Damn, that would be a nice, welcome pullback. We’d wait for the bottom and load up the truck.Silver could suffer the same correction, only more so (because silver acts like gold on steroids in BOTH directions).So why did gold and silver correct so sharply today? It’s profit taking, pure and simple. But that doesn’t rule out a deeper pullback. A lot of fund managers have books to balance at the end of the year.And what would a deeper pullback be? Probably the best opportunity you’ll see in a long time
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