Good call on the $50 drop... but it bounced right off of there.

I think we will easily hit the 1650 mark and perhaps drift down to the 200DMA at around 1550.

Honetly, I believe that a proper stabilization will be very helpfull. With the Shanghai and CME margin hikes, holding futures becomes much more expensive (27% as per the last margin hike) which makes holders of the futures less of a spec nature and much more "serious".

Moreover, I believe that the trickle down we have all been talking about will take effect as well. Futures are now expensive. Large caps are looking more attractive and a less expensive option, mid-tiers are even cheaper and the juniors... well, they will eventually rise.

If we see gold stabilize for the medium term in the 1300-1700 range, there will be a multitude of marginal projects coming online with costs in the 900-1100/oz range and in sub-optimal jurisdictions.