Maintain short positions. The COMEX Gold added USD5 to close at USD1,312.70 in the latest trading session, with the low and high registered at USD1,308.20 and USD1,316.90. We continue to regard the latest positive performance as part of the commodity’s rebound leg, which has been in development since 7 Mar. This resembles a corrective rebound instead of a total price reversal signal. All in, we believe the COMEX Gold’s multi-week correction phase still has legs – this is to correct the upward move that took place between 16 Aug 2018 and 25 Jan. We maintain our negative trading bias.

As based on the daily chart, we are not convinced that the multi-week correction phase has reached an end. Consequently, 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 pegged at USD1,281.50, which was the low of 24 Jan 2018. The second support may emerge at USD1,270.30, or the high of 20 Dec 2018. Conversely, the immediate resistance is set at USD1,349.80, ie the high of 20 Feb. This is followed by USD1,370.50, which was the high of 25 Jan 2018.

Source: RHB Securities Research - 20 Mar 2019