No breakaway from the multi-week consolidation phase; maintain short positions. Despite trading in a wide range between USD1,717.30 and USD1,739.30, the COMEX Gold settled the latest session USD0.90 lower at USD1,735.60. Broadly, we still see the precious metal trading within the possible multi-week sideways trading zone that started from the high of USD1,788.80 on 14 Apr. Based on the latest technical picture, to mark an end to this consolidation phase, the commodity has to cross above the USD1,754.90 resistance mark. Until this happens, we are keeping to our negative trading bias.

We advise traders to stay in short positions. We initiated these on 21 May after the COMEX Gold crossed below the USD1,741.90 mark. For risk-management purposes, a stop-loss can now be placed above the USD1,754.90 threshold.

The immediate support set at USD1,706.20 – the low of 15 Jun – and followed by the USD1,700 level. Conversely, the immediate resistance is now eyed at the USD1,745.00 mark, which was near the 15 Jun’s high. This is followed by USD1,754.90, or the high of 11 Jun.

Source: RHB Securities Research - 18 Jun 2020