Maintain long positions. The COMEX Gold edged higher yesterday, adding USD0.40 to settle at USD1,728.80 – remaining above the 20-day SMA line. The precious metal started Monday’s session at USD1,730. It oscillated between a high of USD1,734.40 and low of USD1,721.60, before closing at USD1,728.80. With the RSI indicator curving up, it is likely that bullish momentum will prevail. The bulls are eyeing the USD1,734.80 immediate resistance level, followed by USD1,745. Meanwhile, the 20-day SMA line is also moving higher, suggesting that the counter-trend rebound may extend further. As such, we are keeping our positive trading bias.

We recommend traders maintain the long positions initiated at USD1,715.60 on 31 Mar. For risk management purposes, the stop-loss is set at USD1,690.

The immediate support remains at USD1,710, followed by USD1,700. Towards the upside, the nearest resistance is pegged at 29 Mar’s high of USD1,734.80, followed by the USD1,745 round figure.

Source: RHB Securities Research - 6 Apr 2021