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.