SINGAPORE: Spot gold may fall towards $1,837, following its failure to break a resistance at $1,867 per ounce.

The rise from the May 16 low of $1,786.60 has been well controlled by a set of retracements on the fall from $1,998.10 to $1,786.60.

The rise from $1,807.10 could be broken down into five small waves.

The structure signals a completion of a bigger wave (3) or wave c.

The small wave 4 ended around $1,837, which works as a target.

Immediate resistance is at $1,856, a break above which could lead to a gain into $1,867-$1,875 range.

Spot gold may test resistance at $1,867

On the daily chart, the metal has climbed above a lower channel.

A duplicated upper channel suggests a target of $1,892. However, gold failed to break the nearest resistance at $1,867.

The failure triggered a pullback towards the lower channel.

The pullback is expected to end around $1,837, from which, the rise may resume towards $1,892.