Maintain long positions. The COMEX Gold maintained its bullish structure despite a pullback, inching USD6.60 lower from Friday’s session, to settle at USD1,882.30. Yesterday, the commodity opened at USD1892.90 and saw selling pressure emerge at the high of USD1,912. It then saw buying pressure near the day low of USD1,859. Following the latest price action, the commodity rebounded from the 50-day SMA line, showing strong buying interest near the moving average. The RSI indicator is also slanting upwards, indicating that the bullish momentum is still intact, and the commodity is likely to trend higher after the consolidation completes. As such, we stick to our positive trading bias.

We recommend traders maintain long positions. We initiated these at USD1,859.10, or the closing level of 16 Dec. For risk-management purposes, a stop-loss can be set below USD1,848.

Downside support is marked at the recent low of USD1,859, followed by USD1,820. On the upside, the immediate resistance is pegged at 3 Nov’s high of USD1,912.20, followed by 22 Oct’s high of USD1,929.40.

Source: RHB Securities Research - 22 Dec 2020