Just iin! Here’s another sub-$1000 gold forecast from Jordon’s, The Daily Gold: Gold is oversold but it has more downside! The sentiment indicators I track are not at extremes nor is Gold anywhere near major support. The good news is its getting close though............................ The monthly chart below continues to depict the situation best. Gold has broken down from a bear flag pattern that projects down to $1035-$1040, which is the next support. The next strong support is not until $970-$1000. Gold has more immediate downside but if it declines to $970 over the next few weeks then it could setup a rebound..................... Sticking with Gold, it is also growing weaker against the other asset classes. Gold/foreign currencies was stable or strong for much of 2014 and 2015. However, it lost its 400-dma a few weeks ago and declined another 1.5% last week. (It also failed in October at the 200-dma). So it failed at resistance then lost the important support of the 400-dma. Gold/global equities has declined to its summer low and Gold/commodities is on the cusp of a mini breakdown...................... While I am very bullish on the US$ and think it could surge higher in 2016, the following chart makes a counter argument. The US$ tends to decline after the Fed begins hiking rates. The chart below looks at the US$’s performance before and after the Fed begins a new rate hike cycle. This time could be different but this data should certainly be kept in mind..................... Over the holiday week Gold broke to a new low while the US$ index appeared to inch to a new bull market high. Meanwhile, the gold miners remained above key support while Silver also failed to make a new low.................. To repeat myself, it is a tricky situation. Will Gold continue to plunge and take the miners and Silver with it? Or are the miners and Silver telling us Gold will bounce at $1040, or even $1000?................ In the past three premium updates we’ve spent some time analyzing our favorite junior companies and some on our watch list. The companies with the best fundamentals (strongest deposits or lowest cost production) have held up the best. Everything and everyone else is falling by the wayside. A few companies on our watch list with decent deposits (uneconomic right now) and cash are trading around 2x cash. With the potential for Gold to drop another $100-$200/oz ($890 on a spike low?) these types of companies could end up trading very close to cash value. That typified the major bottom of the early 2000s........................ The good news is if Gold drops another $75-$150/oz then even the absolute best companies will get hit. Those are the ones I’m interested in because they will survive and they will lead the recovery in 2016. Companies with C-grade fundamentals could ultimately rise 10-fold or more but they may not begin to rip higher until 2017................... In yesterdays update TDG #441, I noted a junior producer that could become a great value if it declines more than 10%. There are also some quality juniors that would become great values if they decline another 15%-20%............... We are big long-term bulls on the precious metals sector but we do not want to be buyers until the sector becomes extremely oversold and trades near major support (think Gold $970 or Gold $900) amid extremely bearish sentiment (think CoT’s, put-call ratios, surveys, discounts to NAV all showing extreme sentiment). The odds are not yet in the bulls favor but if the sector breaks lower and Gold loses $1040/oz then the odds will come into our favor.