Maintain short positions. The COMEX Gold gave up its previous sessions’ gains, and retested the 8-month low for the second time this week. It fell USD17.80 to settle at USD1,715.80. The precious metal started the session on a bullish note at USD1,736.50, reaching a high of USD1,739.10. However, selling pressure dominated the session, dragging the commodity to a low of USD1,699.40. Mild buying interest emerged near the crucial support level of USD1,700, with the commodity paring its losses to close at USD1,715.80. As long as it stays above the support level, there is a possibility it may consolidate an interim base to stage an upward technical rebound. Otherwise, it may retrace further, at least towards USD1,685. As the RSI suggests continued weak momentum in the coming sessions, we keep our negative trading bias.

We recommend traders maintain the short positions initiated at USD1,799, or the closing level of 16 Feb. For risk management purposes, a trailing-stop can be placed above the USD1,763 threshold.

The immediate support is marked at the USD1,700 round figure, followed by USD1,685. Towards the upside, the resistance is pegged at USD1,750, followed by USD1,780.

Source: RHB Securities Research - 4 Mar 2021