Gold is still in corrective mode of trading. We could see some spike south but my overall outlook is positive as the big selloff last month totally overshoots the market and there are barely sellers any more. The situation with silver is much different, as this precious metal is mostly used in industry than in investment and hedging and the disappointing outlook for the world economy could influence negatively the silver price. So if you trade with put strategy at all it is better to do it in silver and not in gold, where strong demand for physical gold is already activated. A friend of mine asked me how to invest 100k in gold few days ago. He was never invested in gold before, that shows how attractive are the prices now for new investors and buyers.
I think the fundamentals in gold are blown and now it is in the hands of speculators and traders. I take your friends interest as a contrarian indicator, I have a once the last person wants to get into a rally then the rally is over mentality.