Maintain long positions. The COMEX Gold rose higher during Friday’s session despite some profit-taking activities.The precious metal started the session at USD1,957.40, with strong buying interest, and rose towards the day high of USD1,968.90. It broke past our resistance level of USD1,962.50. However, profit-taking activities set in later during the session, and it retraced towards the session low of USD1,944.60. Just before the session ended, it pared its earlier losses to close at USD1,959.10. With the RSI staying above the 50% threshold, we believe the precious metal will attempt to clear the resistance in the coming sessions. As long as it trades above both the 20 and 50-day moving averages, we shall maintain our positive trading bias.
We recommend traders maintain long positions. We initiated these at USD1,917.40, which was the closing level of 3 Nov. For risk-management purposes, the stop-loss is set at the break-even level.
Downside support remains unchanged at USD1,881, which was 2 Nov’s low, followed by USD1,866.70. On the upside, the resistance point is eyed higher at USD1,962.90 which was the high on 21 Sep, followed by USD1,975.20.
Source: RHB Securities Research - 9 Nov 2020