1 It is very difficult to predict where gold will correct but...

1 It is very difficult to predict where gold will correct but just on the hint of a recession causes gold falls below $1600.

2 In the 2008 correction gold went to $800, now the effect is global and many times worst.

3 The India rupee is fall falling which makes gold expensive and causes gold demand to fall.

"The rapid rise and fall in the rupee, and resulting domestic gold price swings had a strong impact on gold buying with both jewellery and investment demand in H2 lower by around 33 percent," the WGC said in a quarterly research report.

http://timesofindia.indiatimes.com/business/india-business/Indias-gold-demand-drops-below-China-in-4th-qtr/articleshow/11915095.cms

4 India is considering placing a ban on gold imports and gold futures trading.


http://www.resourceinvestor.com/2008/05/12/will-india-ban-futures-trading-in-gold

http://www.reuters.com/article/2012/02/22/india-economy-adviser-idUSL4E8DM5BY20120222

5 If gold continues to fall China might sell its gold resulting is a very large correction.

6 If India ban gold imports it will dump around 900 tons of production onto the market. This should spark panic selling.

Therefore I forcast it is posible for gold to fall below $800 short term. I dont have a crystal ball but if certain events occur gold will crash.