On August 19, 2011, the day gold closed at 1852.07, we made the following forecast:
Gold is in its final rally stages. Manic rallies end in crashes, no way around this. The current sharp rally is not sustainable for much longer. Once the crash leg commences, gold will lose at least 30% in its first decline. Gold can continue to rally and top at 1940. If you draw an upward sloping trend-line connecting the 1940 level with the top of wave 3 in 2008, 1940 would be the next major resistance. Once the top is in, 1300 will be the first downside target.