Sterling gold falls under £1000 oz for first time since 2011

The price of gold has fallen below £1000 per ounce (oz) today the lowest its been since 2011.

Gold spot price over the last six hours

According to the gold spot price provided by BullionVault while gold was selling at just above $1,600 per oz the sterling price fell to just over £992 per oz (later under £990 as per chart above).

If I wanted to buy ETF Securities Physical Gold ETF (PHAU) now I would get 10 shares (about 1oz) for £985, significantly lower than the last time I bought at £1,009 (both including a £11.95 broker fee). As I have to buy and sell in sterling the price of PHAU is best represented by the sterling denominated version PHGP - here it is over 1 year to today.

The performances of PHAU vs PHGP over the last three months show the effect of a stronger pound - making gold relatively cheaper for a UK investor. 

The question is whether I should buy now or if this would be a classic example of "catching a falling knife". I'm not sure yet.