sell OTM puts, gold imp vol curve is different than other commodities where long dated vol is lower. Gold long dated vol is higher. Selling GLD puts ($82-$85 strikes, 3-6 months out)when gold price is low, it decays very fast. I sell them whenever gold drops below $900. If the puts get exercised, I am happy to own it in the $830-$860 range, hold it, and wait for the next bounce to sell it out.

China is telling IMF to sell gold on one hand, and secretly buying on the other, this would put a floor on the gold price in the next couple of years, even if it doesn't rally. In addition, I realy think US$ will be much weaker a year from now, and gold price will be higher too.

Gold has strong resistance at $950, and support at $860. Over $950 will it will test $1000 again.