SINGAPORE: Spot gold may slide more to $1,888 per ounce, due to the completion of a five-wave cycle from $1,771.89. A retracement analysis on the cycle reveals the fulfilment of the first target at $1,915.

The second target will be $1,888, which is expected to be reached soon.

The deep fall on Thursday signals a dissipation of the bullish momentum.

Even though the wave pattern suggests a steady uptrend, the extension of the trend could be sluggish once it resumes. A break above $1,932 may lead to a gain into $1,946-$1,960 range.

Spot gold may climb into $1,969-$1,978 range

On the daily chart, a bearish engulfing formed between Wednesday and Thursday. It signals a further drop on Friday.

The pattern also indicates the formation of a temporary top.

A target zone of $1,984-$2,004 has been aborted. It will be resumed when the metal breaks $1,939.