Maintain short positions. The COMEX Gold – seeking a base near the recent low – fell USD14.90 to settle at USD1,868.10. The precious metal started the session at USD1,882.60, trading most of the time near the session high of USD1,888.80 before profit-taking took place during the late hours, where it fell to session low of USD1,860,20. Amidst the 9 Nov sell-down, the COMEX Gold has yet to find firm footing and we have not spotted any meaningful long lower shadows. The 20-day SMA line has also started to tilt downwards, and this will add more selling pressure if the precious metal fails to build a base in the coming sessions. Without any positive technical signals, we maintain our negative trading bias.

We recommend traders maintain short positions. We initiated these at USD1860.60, which was 9 Nov’s closing level. For risk-management purposes, the stop-loss is placed above USD1,895.40, ie the low of 3 Nov.

The downside support is marked at USD1,851, which was 24 Sep’s low, and followed by USD1,842.3, ie the high of 8 Jul. On the upside, the resistance point is pegged at the recent USD1,894.90 high and followed by USD1,924, which was the high of 4 Nov.

Source: RHB Securities Research - 12 Nov 2020