SINGAPORE: Spot gold may break a resistance at $1,985 per ounce, and climb moderately into a range of $1,992-$2,003 before turning around and falling.

The momentum gained through the bounce from the May 18 low of $1,951.73 is likely to maintain for one or two more days, to push the price higher.

A falling trendline defines a limit of $1,992, around which the bounce may end.

But market is usually full of surprises.

It may not necessarily follow what has been painted on the graphic.

A little extension of the bounce towards $2,003 won’t be the reversal of the short-term downtrend, which is supposed to progress into $1,929-$1,947 range.

A break below $1,970 could suggest a continuation of the downtrend.

On the daily chart, a target of $1,939 is yet to be fulfilled, which is pointed by a rising trendline.

Spot gold may fall towards $1,975

A retracement analysis on the uptrend from $1,613.60 indicates a lower target zone from $1,843 to $1,897.

The current fall is believed to be of the same degree to the one from the Feb. 2 high of $1,959.60.

The fall so far seems to be too shallow to complete.