"David - Thanks again for your calm attitude in these difficult times. It is very reassuring to read your comments, and listen to the audio. I do hold a large physical gold position. I presume from your Friday's comments that, you do not think it is time to sell or buy physical gold now. Could you please comment on your views about buying and/or selling gold now?"

David Fuller's view Thanks for your email which is certain to be of interest to many other subscribers.

Gold (weekly & daily) has seen the mean reversion that we cautioned about ever since it became overextended relative to its rising MA in August. The speed of its correction is a function of deleveraging contagion and the USD's rally, as we last saw in 2008. Should this continue, there is a risk that we could see a further pullback by bullion but I think it would be short lived.

There is a good chance that we have seen most of gold's correction in a worst case scenario, and if it can stay above its MA, we have already seen the reaction low. I think gold is a buy on weakness although some investors may prefer to wait until some support building has occurred before increasing exposure.