Maintain short positions. The COMEX Gold saw continued weakness on Monday, falling USD7.20 to settle at USD1,780.90. The precious metal started the session flat, opening at USD1,790.80. During intraday trade, it saw sideways action, with buying pressure emerging near the session low of USD1,767.20, while selling pressure was seen near the USD1,793.30 session high. As the RSI has reached oversold levels, we think the precious metal will consolidate near USD1,760, before attempting a technical rebound. Also, the commodity is trading very far from the 20 and 50-day SMA lines, raising the possibility of an immediate-term rebound. Until the metal breaks above the reistance level, we will 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, and to protect profits, the trailing stop is revised to the USD1,812 mark.

Downside support is marked at the USD1,760 round figure, followed by USD1,750. On the upside, the immediate resistance is pegged at the USD1,800 round figure, followed by USD1,843.

Source: RHB Securities Research - 1 Dec 2020