Still looks like part of a minor pause; maintain short positions. The COMEX Gold formed a white candle to settle the latest session higher by USD15.20 at USD1,484.40. The session’s low and high were recorded at USD1,465.40 and USD1,487.70. Until further positive price actions take place in the coming sessions, the latest positive performance can be seen as part of the precious metal’s sideways consolidation phase in the recent weeks. This consolidation came in to correct the commodity’s previous downleg. Hence, we keep to our negative trading bias.

With no price reversal signal spotted, we advise traders to stay in short positions. We initiated these at USD1,464.10, or the closing level of 11 Nov. For risk-management purposes, a stop loss can be placed above the USD1,525.00 threshold.

Immediate support is pegged at the USD1,406.00 mark, ie near the low of 1 Aug. This is followed by USD1,390.90, or the low of 1 Jul. Moving up, the immediate resistance is set at USD1,525.00 – the high of 3 Oct. This is followed by USD1,566.20, which was the high of 4 Sep.

Source: RHB Securities Research - 4 Dec 2019