Maintain long positions. The COMEX Gold saw its technical rebound extend into Wednesday, rising USD11.30 to settle at USD1,830.20. The precious metal started the session flat, opening at USD1,819.10. After dipping to the day low of USD1,810.50, buying interest lifted it to the day high of USD1,835.70 – breaching the USD1,822 resistance level, and closing at USD1,830.20. We believe the bullish momentum will remain as long as the precious metal trades above the USD1,800 psychological support threshold. However, if the RSI momentum indicator crosses above the 50% threshold in coming sessions, this will further strengthen the rebound to test the resistance point near the 20-day SMA line. As the rebound is in progress, we maintain our positive trading bias.

We recommend traders to maintain long positions. We initiated these at USD1,818.90 or the closing level of 1 Dec. For risk-management purposes, a stop loss can be set below the USD1,800 mark.

Downside support marked at the USD1,800 round figure, followed by USD1,760. On the upside, the immediate resistance is pegged at USD1,843, followed by the low of 9 Nov, USD1,854.

Source: RHB Securities Research - 3 Dec 2020