We've already seen a minor bounce in gold prices from those July lows, but there hasn't really been much buying pressure behind that. We may need to see gold dip back down below $1080 (and possibly all the way to $1110-20) for the market to spring back into action. Such a short squeeze initiated within the technical zone I've highlighted would set the stage for a decent bull run at least over the medium term (3-4 months). This could especially occur if global economic conditions sour even further, pushing the Fed to shift course on it's interest rates forecast, leading to a significant decline in the dollar (all those speculative buys being purged from the market).
This is just a scenario that I find interesting, but I'll be adjusting my expectations according to economic data, price action and market sentiment towards the year's end. One last note: on a technical basis, a break below $1000 (more upside to the dollar) would suggest a further decline all the way to $700, which is also a major technical level that should not be ignored.