SINGAPORE: Spot gold may retest a support at $1,991 per ounce, a break below which could open the path towards the $1,961-$1,978 range. A five-wave cycle from $1,934.19 has completed.
The metal has fulfilled its first target around $1,998, near the bottom of wave 4.
The second target would be $1,934, the bottom of a bigger wave (4), as the uptrend from $1,804.20 may have reversed.
This target looks a bit far away.
A realistic target will be $1,961. Resistance is at $2,015, a break above which could lead to a gain into the $2,022-$2,032 range.
On the daily chart, the bearish divergence on the RSI confirms a reversal of the uptrend.
The divergence is yet to take full effect and it will be further discounted with a drop towards a much lower level.