Maintain long positions. The COMEX Gold saw a session of two halves yesterday, but managed to advance USD13.50 to settle at USD1,881.50. It initially opened stronger at USD1,870.20, but fell to the day’s low of USD1,852.20 during the first half of the session before rebounding sharply to the high of USD1,891.30. Later in the US trading session, the commodity fell again to its opening price, before jumping to close at USD1,881.50. Although sentiment became wary at one point – with strong selling pressure emerging – we deem the uptrend structure as still intact, as long as the commodity continues to print a “higher low” bullish pattern. While there may be profit-taking in the coming sessions, we expect it to be a shallow correction, and we move the trailing-stop higher. We maintain our positive trading bias.

Traders should keep the long positions initiated at USD1,791.80, or the closing level of 3 May. For risk management purposes, the trailing-stop threshold is raised further to USD1,845.

The immediate support is revised to USD1,852.20 – the low of 19 May – and followed by USD1,830.50, or the low of 10 May. Meanwhile, the nearest resistance is seen at 19 May’s high of USD1,891.30, followed by USD1,900.

Source: RHB Securities Research - 20 May 2021