Maintain long positions. The COMEX Gold’s prevailing trend extended, rising USD10.90 to settle at USD1,841.10. The precious metal gapped USD3.70 to start the session at USD1,833.90. After the positive opening, the bulls pushed brought it towards the session high of USD1,847.40. However, the bulls started taking profits near the high, and the commodity fell to the session low of USD1,826.70. During the final trading hour, the precious metal rebounded to close at USD1,841.10. While profit taking is happening near USD1,847, buying interest also emerging near USD1825. The RSI indicator is on the rise, and once it crosses the 50% threshold, we expect the momentum to be further accelerated, lifting prices higher. We believe the COMEX Gold is on track to test the resistance of the 20-day SMA line. We maintain our positive trading bias.

We recommend that traders maintain long positions. We initiated these at USD1,818.90 or the closing level of 1 Dec. For risk-management purposes, a trailing stop can be set below USD1,825.

Downside support is marked at the low of 3 Dec, or USD1,826.70, followed by USD1,760. On the upside, the immediate resistance is pegged at USD1,854, followed by USD1,864.

Source: RHB Securities Research - 4 Dec 2020