The gold bull market is still very much intact. In fact, it appears that the all-time high could be taken out real soon.
However, on the chart there is an obstacle that the gold price has to overcome. Another failure at this obstacle, and we could have a bigger drop than the one of a few weeks ago.
Below, is a chart of the gold price (from tradingview.com):
The top line is that obstacle that has to be overcome. Another failure at that line, and we could see price drop even more than it did two weeks ago, even to the $1000-level or below. However, although such a drop is possible, it appears very unlikely at this point.
Furthermore, there would be clear indicators in the market (in particular, the stock market) that such a move is about to happen.
On the flip side, a breakout at that obstacle line, and we could see the greatest gold rally of all time. This is mainly because other factors would create a panic that would make gold and silver more sought after than any good in this world.
In other words, the significant breakout of gold (at the obstacle line above), could occur around the same time as other significant collapses in the stock market and the bond market. Collapses don’t come bigger than a bond market collapse or stock market collapse (in that order), so expect an extreme panic when these happen.
A breakout at the line, shown above, would be similar to the 1978/1979 breakout, before gold exploded to a high of $850. However, in 1979, it did not align properly with a debt-collapse as well as a stock market collapse. This time it could very well align perfectly to deliver a fatal blow to the international monetary system.