I do think that GDX goes to $26-$28 area but it will correct after that. I don't have the absolute answers or perfect prediction but that is my best guess. Gold will be range bound and flirt with $1300 at times. Watch the gold last lower high in January 2015. It was $1308 and until gold goes up and breaks that then it isn't officially in a bull cycle yet. Have to make a higher high in the long term chart to officially be in a bull cycle. Mining stocks are way up as if it is a certainty and as if gold already broke January 2015's high but if it doesn't happen then they will correct hard.
I do not believe gold breaks that high of January 2015 anytime soon. That would mean a lower high and that is not a "bull cycle" event. GDX will top out in that $27 area and yes that would put DUST around a buck. From there mining stocks will sell off hard after getting rejected and if gold has not broken past the January 2015 high. GDX would correct to about $19 bucks. Maybe lower if gold drops to below $1200. I don't think gold will do that either. I think gold is range bound for now.
It isn't just gold. Commodities as a whole have been on a roll since February. Steel, oil, nat gas, gold, silver, etc etc. This has been a broad based commodities rally. There is a huge problem though. Economies in the world are not very good and this commodities rally has not been driven by demand for commodities. If it was driven by demand it would be real. It isn't though. It is completely driven by speculators and that will not last. Can't have commodities surge in price and the demand wasn't even there to support it. With world economies not looking good prices of commodities now have surged which makes building, construction, projects, more expensive. Bad formula. Struggling economies with now much higher commodity prices. That will actually slow growth even more. It is a speculator commodities pump job without the commodities demand to support it. If there was strong inflation and growth then no problem but that isn't the case at all. The commodities rally will not sustain without the required demand in commodities to support it.
I'm looking for the commodities rally to be sold off kind of soon as again demand didn't support the rally. I look for GDX to hit $27 area and DUST $1 area and a flush out and then reversal time for DUST and correction time for GDX. Once said and done I see GDX at about $19 bucks or so and DUST around $30 or so (post split).
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