Maintain long positions. The bulls continued to push the COMEX Gold higher, with the index closing at USD1883.90 yesterday. It gapped down to start Thursday’s session at USD1,872.20, before falling to the session’s low of USD1,866.20. However, during the US trading hours, it climbed to the session’s high of USD1,887.20 before settling at USD1,883.90. While the RSI shows that the commodity is moving into overbought territory, the bulls have managed to absorb the selling pressure and advance higher. This shows that bullish momentum is intact, and the precious metal is on track to retest its resistance at USD1,891.30, followed by USD1,900. As the commodity is still on an upward trajectory, we retain our positive trading bias.

We recommend traders hold on to the long positions initiated at USD1,791.80, or the closing level of 3 May. For risk management purposes, the trailing-stop is set at USD1,845.

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

Source: RHB Securities Research - 21 May 2021