Chai Time

Spot gold may retreat into $1,864-$1,877 range

SINGAPORE: Spot gold may retreat into a range of $1,864 to $1,877 per ounce, as it failed to break a resistance at $1,898.

The failure suggests a completion of the first bounce from the June 4 low of $1,855.59 or an extension of the drop from the June 1 high of $1,916.40.

In either case, the metal is expected to drop into the target zone.

A break above $1,898 could lead to a gain into $1,911-$1,919 range.

On the daily chart, the metal faces a resistance at $1,892. The white candlestick forming on June 4 does not look big enough to work as a bullish reversal pattern.

Chances are the metal may pull back towards the falling trendline again.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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