Maintain short positions. The COMEX Gold charted a second consecutive white candle in the latest session to close USD7.20 higher at USD1,570. The positive session is a follow-up from the prior session which saw the immediate support of USD1,552.10 briefly tested. However, these can be seen as just a minor rebound after the recent sharp decline on the failed attempt to test the USD1,600 resistance mark. Premised on this, we keep to our negative trading bias.

As we have yet to see the bulls regaining control over the price trend, we maintain our short positions recommendation. We initiated these at USD1,555.50, the closing level of 4 Feb. For risk-management purposes, a stop-loss can be placed above the USD1,600 level.

The immediate support is maintained at USD1,552.10, or the low of 21 Jan. This is followed by USD1,542.80, the low of 14 Jan. Towards the upside, the immediate resistance is set at USD1,575, derived from 4 Feb’s candle. This is followed by the USD1,600 round figure.

Source: RHB Securities Research - 7 Feb 2020