Maintain long positions.he COMEX Gold is struggling to stay above the key level of USD1,900. It started the session at USD1,917.90, travelling to a high of USD1,924 before heading south to a low of USD1,888.60. Later in the session, the precious metal pared some of its earlier losses to close at USD1,903.10. From yesterday’s price action, we see that the precious metal is forming a sideways trading band between the resistance point of USD1,924, and support level of USD1,881. Profit taking activities tend to happen near the resistance point, and buying interest emerges near the support level. With the RSI indicator climbing above the 50% threshold, we keep our view that the overall momentum will be mildly bullish, and may challenge the 50-day SMA line in the near term. As such, we maintain our positive trading bias.

We recommend traders switch to long positions. We initiated these at USD1,917.40, the closing level of 3 Nov. For risk-management purposes, a stop-loss can be placed below USD1,881.

Downside support is marked at USD1,881, which was 2 Nov’s low, followed by USD1,866.70. On the upside, the resistance point is seen at USD1,924 which was the recent high, followed by USD1,936.

Source: RHB Securities Research - 10 Nov 2020