Still waiting for a confirmation for an end to the multi-week correction; maintain short. The COMEX Gold closed USD1.30 higher at USD1,295.60 in the latest trading session. The trading ranged between USD1,288.30 and USD1,297.80. At this juncture, we still believe further positive price actions – ie an upside breach of the USD1,304.60 immediate resistance – is needed to confirm that the commodity’s multi-week correction has indeed reached an end. Once this is confirmed, the bias is for the COMEX Gold to resume its upward move, which started from the low of USD1,162.70 on 16 Aug 2018. For now, we maintain our negative trading bias.

As the commodity is still not able to confirm a change in the price direction, we continue to recommend that traders stay in short positions. These positions were initiated at the USD1,322.70 level, which was the closing mark of 1 Mar. For risk-management purposes, a stop-loss can be placed at USD1,304.60.

Immediate support is still maintained at USD1,281.50, which was the low of 24 Jan 2018. The following support may emerge at USD1,270.30, or the high of 20 Dec 2018. On the other hand, the immediate resistance is expected at USD1,304.60, ie the high of 29 Mar. This is followed by USD1,330.80, which was the high of 25 Mar.

Source: RHB Securities Research - 8 Apr 2019