Maintain short positions as the bias is still negative. The COMEX Gold’s intraday tone was negative as it generally moved lower. The high and low were at USD1,316.60 and USD1,299, before ending at USD1,301.40, indicating a decline of USD14.40. While the commodity had rebounded over the prior few sessions, the rebound still look corrective and not showing signs of a total price reversal. Overall, we maintain the bias that the commodity is still in the process of developing a correction phase – to correct its prior multi-month’s advancement. Maintain our negative trading bias.

As the bears are still in firm control over the price trend, we continue to recommend traders stay in short positions. These positions were initiated at USD1,322.70, which was the closing level of 1 Mar. For risk-management purposes, a stop-loss can be placed above the USD1,349.80 level.

The immediate support is maintained at USD1,281.50, which was the low of 24 Jan 2018. The second support is at USD1,270.30, or the high of 20 Dec 2018. On the other hand, the immediate resistance is set at USD1,349.80, ie the high of 20 Feb. Breaking this may see market test USD1,370.50, which was the high of 25 Jan 2018.

Source: RHB Securities Research - 15 Mar 2019