Maintain long positions. The COMEX Gold saw continued profit-taking activity on Monday, falling USD12.10 to settle at USD1,732.70 – trading at the edge of the 20-day SMA line. The precious metal started the session at USD1,744.50. After touching the session’s USD1,746.20 high, it fell to a low of USD1,727, and was last traded at USD1,732.70. If selling pressure continues, the commodity may fall below the 20-day SMA line. This would signal that the recent counter-trend rebound phase is over. However, if the commodity manages to cling on to the 20- day SMA line and consolidate sideways, it may see upward movement resume in the coming sessions. We remain cautious on the price actions, and maintain our positive trading bias until the trailing-stop is breached.

We recommend traders maintain the long positions initiated at USD1,715.60 on 31 Mar. For risk management purposes, the trailing-stop is set at USD1,725.

The immediate support is revised to USD1,728, followed by USD1,715. Towards the upside, the nearest resistance is pegged at 8 Apr’s high of USD1,759.40, followed by USD1,765.

Source: RHB Securities Research - 13 Apr 2021