every time the yellow metal hits $1200 it hits a technical resistance and pops back up.
If gold were to hit $1170 it could go as low as $1050 based on the lows of 2010. If gold breaks through $1300 it's very possible we could see a rally a little higher. What's more likely is a longer period of consolidation in this level of $1200 - $1300.
The 100-day moving averages of gold shows the price of $1063 (simple moving average) and $1158 (exponential moving average). Should gold fall to these levels it could be considered a buying opportunity.
Right now the US Dollar has gained a ton of strength in the short term, with the index hitting 84.31 on Monday. I believe it could go as high as 87, which is bad for gold. This strength in the dollar is due to the Fed's talk of tapering their monthly asset purchase program known as QE, as early as the end of this year. Whether they actually begin to taper is anyone's guess.
In conclusion I see no significant gold rally ahead in the short term but those who have a longer term investment horizon (longer than a year) should definitely see this price as a buying opportunity. Should we drop lower to the $1100 area, the case to buy would only get stronger.