SINGAPORE: Spot gold may drop to $1,978 per ounce, due to the completion of a five-wave cycle from $1,934.19. This is the final wave of a five-wave cycle from $1,804.20.
The cycle itself may have peaked as well.
Based on this observation, the metal may approach the bottom of the wave (4) at around $1,934.
Resistance is at $2,005, a break above which may lead to a gain into the $2,015-$2,022 range.
Spot gold may test support at $1,963
On the daily chart, the bearish divergence on the RSI confirms a reversal of the uptrend.
To fully discount this divergence, gold is expected to slide more.
Any bounce against the slide would most likely be weak and brief.
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