Immediate resistance still holding up, maintain short positions. The yellow metal performed positively during the latest trading session and tested the USD1,304.60 immediate resistance before closing at USD1,301.90. The low and high were clocked at USD1,295.50 and USD1,307.90. As mentioned before, the said immediate resistance needs to be taken out decisively to possibly mark the end of the COMEX Gold’s multi-week correction phase. Until this happens, the risk for further retracement should still be high. We keep our negative trading tone.

As there are no signs that the bulls have regained the control over the price direction, we continue to recommend 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 the USD1,304.60 threshold.

Towards the downside, support may be found at USD1,281.50 – the low of 24 Jan 2018. This is followed by USD1,270.30, or the high of 20 Dec 2018. Conversely, the immediate resistance is set 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 - 9 Apr 2019