Maintain short positions as the bearish tone stays strong. The COMEX Gold ceased the latest session USD5.80 better at USD1,488.10. The low and high were posted at USD1,460.90 and USD1,522.50. Despite the latest positive performance, looking at the commodity’s price actions over the recent sessions, we believe the precious metal is experiencing a consolidation around the 200-day SMA line. Once this consolidation phase is over, the retracement phase is likely to resume. Hence, we are keeping our negative trading bias.

As the trend is still bearish, we maintain our recommendation that traders stay in short positions. We initiated these at USD1,593.20, or the closing level of 12 Mar. For risk-management purposes, a stop-loss can be placed above the USD1,556.40 mark.

Immediate support is maintained at USD1,468.60, the low of 18 Mar. This is followed by USD1,453.00, the low of 16 Mar. Moving up, the immediate resistance is expected at the USD1,500 round figure, followed by USD1,525.00 – derived from 18 Mar’s candle.

Source: RHB Securities Research - 23 Mar 2020