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.