Maintain long positions. The COMEX Gold moved higher on the first trading session of the week, rising USD7.80 to close at USD1,886.70. It gapped up to open at USD1,885.60 yesterday, and rose to the day’s high of USD1,890. Although it fell to a low of USD1,877.90 during the European trading hours, it rebounded later to settle at USD1,886.70. With a long lower shadow printed on the chart, the balance of strength is seen to be tilted towards the bulls – buying pressure is greater than the selling pressure. As the precious metal is consolidating near USD1,890, it may see the bullish momentum push it against the immediate resistance pegged at 19 May’s high of USD1,891.30. A breach of the immediate resistance will see the commodity move higher to test the USD1,900 psychological level. As bullish momentum remains intact, we maintain our positive trading bias.

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

The immediate support is revised to USD1,866.20 – the low of 20 May – followed by USD1,852.20, or the low of 19 May. The nearest resistance is seen at 19 May’s high of USD1,891.30, followed by USD1,900.

Source: RHB Securities Research - 25 May 2021