Maintain long positions. The COMEX Gold saw mild buying interest yesterday, rebounding USD8.00 to settle at USD1,735.50. The precious metal started the session at USD1,728.20 and, after trading within a narrow range of USD1,739.90 and USD1,724.80, it closed at USD1,735.50. Based on the recent sessions’ price actions, we still see mild buying interest when the commodity trades nearer to the 20-day SMA line. The COMEX Gold will continue to move within the counter-trend rebound phase until the USD1,719.10 support level is breached. As a higher low pattern has been observed, and is staying intact, we make no change to our positive trading bias.

We recommend traders stick to long positions – initiated at USD1,729.20, or the closing level of 15 Mar. For riskmanagement purposes, the stop loss is raised to USD1,717.

The immediate support kept at 17 Mar’s low of USD1,724.10 and followed by 18 Mar’s USD1,719.10 low. Towards the upside, the nearest resistance is pegged to 23 Mar’s high of USD1,744.40 and followed by 18 Mar’s high of USD1,756.

Source: RHB Securities Research - 25 Mar 2021