This isn't so much a "gold correction." This is a worldwide reaction to Dubai World stating that they will be taking a 6 month moratorium on debt payments; in other words, "They are in trouble." This has caused an unwinding of some of the U.S. dollar carry trade and the selling of assets held by the carry traders. Note the rise in the dollar and the sudden drop in gold and silver.

Dan Norcini over at jsmineset has an article on this. It is also why the futures are down so large. Once the shock of this is over it will actually be gold positive. But for the moment (like last year) all investments, even the best, are sold to get dollars and unwind the carry trade because no one yet knows where the risk lies and how great it is relative to this event. U.K. banking may get hit hard by this.

P.