Maintain long positions. The COMEX Gold surged during yesterday’s session, breaking out from the sideways zone near USD1,900, to settle at USD1,953.80. It started the session at USD1,910.50, with strong buying interest, and rose towards the day high of USD1,961.40. It stayed near the day high for most of the session, before retracing USD7.60 to close at USD1,953.80. As expected, this week will be crucial for the precious metal, as we see the 20-day SMA line curving up. With yesterday’s strong performance, we switch our attention towards the resistance level formed near the bearish crossover of moving averages. If the USD1,962.90 resistance point is breached, it will reinforce the bullish trend, and the 50-day SMA line will start curving higher. Underpinning strong buying interest, we maintain our positive trading bias.

We recommend traders maintain long positions. We initiated these at USD1,917.40, or the closing level of 3 Nov. For risk-management purposes, the stop-loss is raised to the break-even level.

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 pegged higher at USD1,962.90, or the high of 21 Sep, followed by USD1,975.20.

Source: RHB Securities Research - 6 Nov 2020