Well, the year so far has been gold's worst start to a year in 25 years. In fact, investors sold off 106.2 metric tonnes of gold from exchange-traded products (ETP) in the month of February alone. This has been the biggest sell off since the creation of ETP in 2003. Many are already ringing the alarm that the 12-year gold bull rally is nearing its end. Renowned investor George Soros has slashed his stake in the biggest ETP by a whopping 55%.

Why is the gold correcting now? There seems to be a change of sentiment globally. Many are beginning to believe that the world economy is on the path of recovery. Improving economic activity tends to push capital out of gold and towards equities and other assets.

We do not share the same enthusiasm for the world economy yet. In the aftermath of the 2008 financial crisis, policymakers pumped in excessive liquidity into the financial system. They tried to solve a debt problem by injecting more debt. So the real problem has not been solved at all. And this, in our view, still poses a serious risk to the developed world. So, there are good chances that gold prices will continue to correct for a while. But this must be treated an opportunity to buy the yellow metal.