Maintain long positions. After recouping its earlier losses, the COMEX Gold turned higher on Friday, rising USD6.80 to close at USD1,905.30. The commodity started Friday’s session at USD1,899.80. After establishing the day’s low at USD1,884.30, it reversed to towards the day’s high of USD1,908.80 before settling at USD1,905.30 – moving back into the USD1,900 territory. Although there was selling pressure early in the session, the commodity managed to close the week higher – indicating that the bulls are still in control. With the latest positive week, the commodity has been moving upwards for four consecutive weeks. Underpinned by bullish momentum, the COMEX Gold is likely to test the immediate resistance of USD1,915.60 to form a fresh “higher high” price pattern. As such, we hold on to our positive trading bias.

Traders should keep to the long positions initiated at USD1,791.80, or the closing level of 3 May. For risk management, the trailing-stop threshold is placed at USD1,870.

The immediate support is marked at USD1,893.20 – the high of 19 May. This is followed by USD1,872.50, or the low of 21 May. The nearest resistance is pegged at 26 May’s high of USD1,915.60, followed by USD1,925

Source: RHB Securities Research - 31 May 2021