Maintain short positions. The COMEX Gold managed to reverse its earlier session’s weak performance to close the session USD1.50 higher at USD1,571.60. The low and high were recorded at USD1,564.40 and USD1,573.60. For now, as long as the commodity is still capped by the USD1,580.50 resistance point, the correction that resumed on the failed attempt to cross the USD1,600 mark is still likely to extend. Premised on this, we are keeping our negative trading bias.

As we believe the correction phase is still incomplete, we maintain our short positions recommendation. We initiated these at USD1,555.50, or the closing level of 4 Feb. For risk-management purposes, a stop-loss can be placed above the USD1,580.50 level.

The immediate support is expected at USD1,563.50, which was the low of 7 Feb. This is followed by USD1,552.10, ie the low of 21 Jan. Conversely, the immediate resistance is pegged at USD1,580.50, or the high of 10 Feb. This is followed by the USD1,600 round figure.

Source: RHB Securities Research - 13 Feb 2020