Maintain long positions. The COMEX Gold saw momentum pick up yesterday, rising USD15.70 to settle at USD1,898.60. The precious metal had a weak start, opening at USD1,881.80, before dipping to the day low of USD1,879.50. Buying interest came in during the second half of the session, pushing the commodity to the day high of USD1,899, and closing at USD1,898.60 – close to the USD1,900 psychological level. With the RSI still pointing upwards, we think the commodity is moving higher in full swing. If the USD1,900 threshold is breached, it is very likely to test the next resistance point of USD1,912.20. Riding on the strong momentum, we maintain 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 USD1,859.

Downside support remains at the recent low of USD1,859, followed by USD1,820. On the upside, the immediate resistance is pegged at the USD1,900 round figure, followed by high of 3 Nov, which was USD1,912.20.

Source: RHB Securities Research - 31 Dec 2020