Maintain long positions. The COMEX Gold experienced mild selling pressure yesterday, declining USD1.30 to settle at USD1,778.80. Initially, the commodity started the session at USD1,781.10. Selling pressure during the Asian trading hours dragged it to the session low of USD1,773.90. The COMEX Gold then rose to the session high USD1,785.90 during the US trading hours, but – failing to hang on the gains – it retraced during the late session session and last traded at USD1,778.80. From the recent price action, we believe selling pressure may persist until the precious metal can move past the USD1,805 resistance – or at least the USD1,800 psychological level. If selling pressure accelerates, the COMEX Gold may correct towards the 20-day SMA line, followed by the 50-day SMA line. Before the correction phases commence, we maintain our positive trading bias.

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

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

Source: RHB Securities Research - 28 Apr 2021