Maintain long positions. The COMEX Gold saw a volatile session last Friday, retracing USD4.20 to settle at USD1,777.80. The commodity started the session at USD1,784 and moved sideways for most of the time. Coming into the US trading hours, it initially rose to the session high of USD1,796.30. Shortly after that, selling pressure emerged and dragged the COMEX Gold towards the USD1,769.50 session low. After such volatility, the commodity stayed sideways until the session ended at USD1,777.80. We think it may consolidate sideways before it can re-test the overhead USD1,800 psychological level. As we have seen the RSI pointing downwards, the precious metal may test the USD1,770 immediate support level. Breaching this support may see the correction extend towards the 50-day SMA line. We maintain our positive trading bias before that happens.

We recommend traders stay with the long positions initiated at USD1,715.60 on 31 Mar. For risk-management purposes, the trailing-stop threshold is fixed at USD1,770.

The immediate support is marked at USD1,770 and followed by the USD1,750 round figure. Towards the upside, the nearest resistance is projected at USD1,805, followed by USD1,815.

Source: RHB Securities Research - 26 Apr 2021