The heavy selling that has been taking place this week in silver and gold is continuing on Friday. COMEX gold is currently down another $31.50, or 2.27%, at $1,355.50. Silver futures have plunged 3.46% to $28.25.
On the New York Stock Exchange, the major precious metals ETFs are faring a little bit better. The SPDR Gold Trust ETF (NYSE: GLD) has shed 1.14% to $132.52 and the iShares Silver Trust ETF (NYSE: SLV) has lost 1.57% to $27.56.
It is difficult to not look at this correction as a buying opportunity, although things likely starting to get uncomfortable for recent longs in the precious metals space. The U.S. Dollar has been falling precipitously, and inflation reports have been filtering in from around the world.
Brave bulls may want to consider getting involved here using tight stops. Every single pullback in gold and silver has been a buying opportunity, and considering the economic backdrop, there is little reason to believe that this time is any different.
This article was originally published on Benzinga, and is republished here with permission.