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.

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