SINGAPORE: Spot gold may rise into a range of $2,011-$2,021 per ounce, following the completion of a five-wave cycle. These waves appear to be corrective in nature, which suggests a small chance of the metal falling to $1,966, a target pointed by a rising channel.

The wave structure also suggests a possibility that gold may retest the resistance at $2,032.

Immediate support is at $1,988, a break below which could open the way towards the $1,966-$1,977 range. On the daily chart, the deep drop over the past two days makes a bullish triangle and a pennant look doubtful.

The drop does not appear to be a simple pullback towards these patterns. Instead, it suggests a reversal of the uptrend from the Feb. 28-low of $1,804.20.

Spot gold may fall into $1,966-$1,977 range

These patterns will be reconsidered if gold manages to stand firm above $2,004 on Tuesday.