I didn’t mean to imply that price would dive all the way to 1,000 in a straight line. The move to 1,000, if it plays out, might take a couple of months. When price broke to the downside (out of the triangle I posted in June), it broke a significant technical support level at 1,182.
Another (possibly weaker) support level will be 1,100, only because it’s a big round number. But, not as “big and round” as 1,000. I think that 1,000 will be a major psychological level. On the chart below, the support level appears to be 980, but that’s close enough to 1,000 for our purposes.
I would expect some major battling between the bulls and the bears all over a battlefield defined by 950 -1,050, before the issue is resolved. And, when the issue has been resolved (when the market has chosen its direction), I would expect a dramatic move, either up or down, away from that range.
If the $1,000 support lever does not hold, we could see $500 gold in a couple of years. If the $1,000 level holds, we could see $2,000 gold in a couple of years. I expect the latter.
But, I’m just a humble forex trader, not a gold analyst. So, don’t put too much stock in my “predictions”.