Maintain long positions. The COMEX Gold moved along the 20-day SMA line, inching higher last Friday to add USD7.40 and settle at USD1,734.70. It started the session at USD1,727.50. During the London trading hours, it dipped to the session’s low of USD1,721.20. Later, during the US trading hours, it recouped its losses to touch a high of USD1,737.90. From the price actions, the precious metal is consolidating within a sideways zone of USD1,756 and USD1,719.10. A breach of either one of these boudaries will see a new trend forming. As the commodity stayed above the 20-day SMA line, and is still exhibiting a “higher low” pattern, we keep our positive trading bias.

We recommend traders stick to long positions. These were initiated at USD1,729.20, or the closing level of 15 Mar. For risk management purposes, the stop-loss is set at USD1,717.

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

Source: RHB Securities Research - 29 Mar 2021