Maintain short positions. The COMEX Gold consolidated near USD1,800 after a sharp fall on Tuesday, adding USD1.00 to settle at USD1,811.90. The precious metal started the session flat, opening at USD1,812. It rose to test the session high of US1,821.70 before faltering to the session low of USD1,804.70. With the RSI trending below the 50% threshold level, we think the current negative momentum will prevail. We may see a rebound when the indicator drops into the oversold region. Given the declining 20-day and 50-day moving averages, 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, a trailing stop can be set above the USD1,838 mark.

Downside support is marked at the USD1,800 round figure, followed by USD1,787.50, or the high of 18 May. On the upside, the immediate resistance is sighted at USD1,830, followed by USD1,880.70 – the high of 23 Nov.

Source: RHB Securities Research - 26 Nov 2020