Precious Metals and Miners are dropping, and gold is approaching October’s $1,262.80 low (currently $1,266). If prices remain under pressure, a recognition day is likely. Remember, a recognition day is a high volume down day when bulls acknowledge a breakdown and begin to panic out of their positions. Typically, miners (GDX) will drop 3% or more (currently down 1.50%).

We should see expedited selling if gold declines below $1,262 and closes the day below $1,260.

Prices finally appear to be breaking down. We should see an excellent buying opportunity in the coming weeks.

I’ll post another update before the close.

Note: I have a dinner meeting and tonight’s report will be later than usual.