SINGAPORE: Spot gold may break a support at $1,860 per ounce, and fall towards $1,842.

The metal failed to overcome this barrier on June 4. After struggling above this level for more than one week, it broke a rising trendlie and fell towards this support again.

This time the metal is highly likely to succeed.

A break could open the way towards $1,825. However, the current drop is driven by a wave c, which observes closely its projection levels.

The 100% level of $1,842 will be the higher target before gold reaches $1,825.

A bounce triggered by $1,860 will be regarded as a pullback towards the trendline. Most likely, the pullback would end around $1,879.

On the daily chart, the correction triggered by the key resistance at $1,921 has extended. A further slide below $1,851 could confirm the break above the trendline was false.

This false break would mark a reversal of the uptrend from $1,676.10 or a deep correction towards $1,784-$1,818 range.

The consolidation since June 1 looks more and more like a top pattern.

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