New Delhi, Aug. 4 -- Gold could see a deeper correction if it breaks below USD 3,857/oz, with the next major support at USD 3,500/oz -- a level that would mark a decline of around 37 per cent from the January high, while stronger yen may provide some relief, according to a report by World Gold Council.

"Should weakness extend below US$3,857/oz we would see the next major support at the April/October range high at USD 3,500/oz. This would represent a decline of approximately 37 per cent from the January high which would be consistent with previous major downturns in Gold, and we would thus be alert to a more important floor being found here," it said.

As per World Gold Council, the Japanese yen's surge, supported by the first coordinated...