The following graph plots the gold price during the 1970s over the gold price action since 2001.
Source: Plexus Asset Management (adapted from www.ZealLLC.com)
At this point, the current cycle remarkably resembles the price movements of the previous cycle. The gold price could stagnant at the current level for the next year or two and still remain on course for the spectacular gains precious metals enjoyed during the 70s.
This possibility is consistent with my bearish intermediate-term, but bullish long-term outlook on gold. Gold bulls need to keep in mind that no bull market goes up in a straight line and corrections can be severe and plentiful.