http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/15_Jim_Sinclair_-_Gold_Milestone_at_%241%2C764_Paves_Way_to_%2412%2C000.html

Gold at $1,764 is as important as gold at $524.90, and above $524.90 the gold market went into a runaway. It’s the exact same setup at $1,764, but having said that $1,764 should bring in some significant supply.

However, a move above $1,764 would be the equivalent of $524.90 in the sense that you would go from the runaway that was born at $524.90, into a hyperbolic market. The key to all of this is $1,764 and you will go above that level, but what that does is lock in five figures on the price of gold. A move above $1,764 brings into focus prices as high as $12,000, so we are are approaching the most critical milestone in the entire gold bull market.”

Another worry is that if you continue to see the US economy slow, there will be increasing pressure on Bernanke. His comments today notwithstanding, he is trying to back away from QE3, but basically the Fed can’t walk away from their own minutes from the FOMC. So there will come a time where the Fed will try to come in and liquify the markets again and you are going to get that liquefaction process by the Federal Reserve in conjunction with the issues that have not been resolved in Europe and there’s no telling what could happen as far as investor’s fear levels.

Investors could generally begin to panic and that could have an outsized impact on gold and corresponding price movements. The conditions are in place for a very rapid acceleration in gold if the confidence levels on the part of investors continues to deteriorate. It would not take much to break that fragile confidence and send people fleeing out of paper and into gold.”