SINGAPORE: Spot gold may retreat into a range of $1,864-$1,877 per ounce, following its two failures to break a resistance at $1,898.

The failures indicate an extension of the correction from the June 1 high of $1,916.40. Three waves make up the correction. The third wave labelled c is unfolding.

It is not very clear how far this wave could travel. A long wave c may travel to $1,843, while a short one could end around $1,864.

A break above $1,898 could lead to a gain into $1,911-$1,932 range. On the daily chart, the metal failed to go above the open price of $1,907.11 on June 3, where a big black candlestick started.

With all their endeavours over the past three days, bulls are still unable to recover the loss. Chances are the market may retreat towards the support at $1,851 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.