SINGAPORE: Spot gold may rise into a range of $1,886-$1,898 per ounce, as it may have completed a correction around a support at $1,853.

It is not very clear if the correction would extend. At least, the first part of the drop from the June 1 high of $1,891.77 has completed.

The correction was triggered by a common projection level of $1,919. This is a bit extraordinary as generally, the 138.2% or the 161.8% projection level is more likely associated with a deep correction.

A break below $1,853 may cause a fall limited to $1,843.

On the daily chart, the deep drop on Thursday is classified as a pullback towards a falling trendline.

The pullback occurred earlier than expected. It was thought to appear around $1,959, the peak of a wave B. The pullback seems to have ended around $1,851.

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