How low will gold go?

Gold and silver have both entered a correction phase. Gold began 2011 at around $1,420 an ounce. By the end of last week, it was more than 3% lower at $1,370. Silver, meanwhile, toasted the New Year at around $31 an ounce. Celebrations were due – it had risen some 80% in 2010 – but the hangover quickly set in. A week later it was down more than 5% at around $28.60. Meanwhile, at $34, Silver Wheaton – one of the leading silver stocks – is now down over 20% from its early December high of $42. That's quite a wallop. But gold and silver have had a stellar 12 months. This correction is overdue. And it's one that I welcome. Nothing goes up in a straight line and all that. Ultimately, it will add to the longevity of this bull market.