SINGAPORE: Spot gold may break a support at $1,919 per ounce and fall into a range of $1,883-$1,905, following its failure to break a resistance at $1,942 per ounce.

A bullish target of $1,956-$1,969 has been temporarily aborted and will only be resumed when gold breaks $1,942. The metal has broken a short trendline.

It is expected to fall towards the lower trendline, which points at a target of $1,905.

Given that the uptrend from the Dec. 22, 2022 low of $1,783.30 has not been disrupted by a decent correction, the current fall could be deep enough to extend below the lower trendline.

Spot gold still targets $1,956-$1,969 range

On the daily chart, a bearish engulfing pattern formed between Wednesday and Thursday, signalling a reversal of the uptrend from $1,758.18.

The drop is tentatively classified as a pullback towards $1,898.