Maintain long positions. The COMEX Gold edged slightly higher yesterday, adding USD6.30 to settle at USD1,837.60. It initially gapped up to start Monday’s session at USD1,835.40. After finding its intraday low at USD1,830.50, it rose to the day’s high of USD1,846.30. However, as the bears took profit above the USD1,840 level, the commodity pared its gains to close at USD1,837.60. As the closing price was above the opening price, we deem the bulls as still in control of the bullish trend. The precious metal may consolidate sideways before another attempt to cross above the USD1,840 resistance level. If profit-taking activities continue, it may pull back towards USD1,815. As it is still exhibiting a bullish “higher high” pattern, we keep our positive trading bias.

We recommend traders keep to the long positions initiated at USD1,791.80, or the closing level of 3 May. For risk management, the trailing-stop is set at USD1,805.

The immediate support is unchanged at USD1,815, followed by the USD1,805 round figure. Towards the upside, the nearest resistance is seen at USD1,840, followed by USD1,850.

Source: RHB Securities Research - 11 May 2021