Maintain short positions. The COMEX Gold saw the support level breached on Monday, declining USD34.10 to settle at USD1,844.10. The precious metal started the session with a neutral sentiment, opening at USD1,875.90. The commodity then saw the support level of USD1,860 breached at 6PM local time. The bulls became risk-off, dumping the commodity towards the day low of USD1,834.40. Just as we expected, the rebound last Friday was merely the calm before the storm – the commodity is resuming the downtrend movement. We anticipate the average trading range to increase to at least USD25.00 from the current USD15.00. A USD25.00 range from USD1,844.10 would see the downside support at c.USD1,820. Since the bearish trend is resuming, we maintain our negative trading bias.

We recommend traders hold on to short positions. We initiated these at USD1,860.60 on 9 Nov. For riskmanagement purposes, the stop-loss can be set above USD1,884.70, or the high of 20 Nov.

The downside support is anticipated at USD1,820, followed by the round figure of USD1,800. On the upside, the immediate resistance is pegged at the recent high USD1,884.70, followed by USD1,924, which was 4 Nov’s high.

Source: RHB Securities Research - 24 Nov 2020