Maintain long positions. The COMEX Gold continued to move higher on 2020’s last trading day, adding USD1.70 to settle at USD1,895.10. The precious metal started the session at USD1,899, rising to the day high of USD1,904.90. Selling pressure was seen near the day high, and buying interest emerged near the day low of USD1,889.10. The commodity has yet to cross the USD1,900 psychological level, closing marginally lower at USD1,895.10. We think it will see demand pick up again in coming sessions, as the RSI is pointing upwards. Short term sentiment still tends to be bullish. Meanwhile, we are keeping an eye out for a crossover of the 20 and 50-day SMA lines soon. If this happens, it will change our medium term assessment to bullish, and add strength to the short term trend. Underpinning these positive expectations, 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 22 Oct’s high of USD1,929.40, followed by the USD1,950 round figure

Source: RHB Securities Research - 4 Jan 2021