SINGAPORE: Spot gold still targets a range of $1,864-$1,877 per ounce, as suggested by its wave pattern and a projection analysis.

The metal failed twice 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, the wave c is unfolding.

This wave could travel to $1,843, if it is long, or end around $1,864, if it is short. A break above $1,898 could lead to a gain into $1,911-$1,932 range.

On the daily chart, gold slid below a support at $1,892. It may pull back towards a falling trendline again.

Based on a retracement analysis, the pullback is towards $1,851.

It is a bit doubtful if the current pullback would be so deep, as it is supposed to be shallower than the first one. Chances are it may end somewhere above $1,851.

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