Maintain long positions. The COMEX Gold saw extended bullish momentum yesterday, surging USD14.70 to settle at USD1,793.10. On Wednesday, it started the session at USD1,779.10 and found its low at USD1,776.60. Strong buying interest emerged during the US trading hours, lifting the commodity towards the session’s high of USD1,798.40. The session concluded at USD1,793.10. Underpinned by strong momentum, the precious metal bulls are eyeing the next resistance levels, pegged at USD1,805 and USD1,815. As long as the commodity continues to trade above the 50-day SMA line, we may see the 20-day SMA line crossing above the 50-day SMA line as early as 27 Apr – strengthening the upside risks. As the RSI is trending higher, suggesting bullish momentum is gaining traction, we stick to our positive trading bias.

We recommend traders maintain the long positions initiated at USD1,715.60 on 31 Mar. For risk management purposes, the trailing-stop is placed higher at USD1,770.

The immediate support is revised to USD1,770, followed by the USD1,750 round figure. Towards the upside, the nearest resistance is pegged at USD1,805, followed by USD1,815.

Source: RHB Securities Research - 22 Apr 2021