Maintain short positions. After a strong rebound at the 20-day SMA line, the COMEX Gold inched higher on Monday, adding USD6.80 to close at USD1,898.80 – slightly below the USD1,900 psychological level. Initially, the commodity opened Monday’s session stronger at USD1,894.30. After established the intraday low at USD1,883.70, it rose to the day high at USD1,902.90 before settling in at USD1,898.80. Based on the last two sessions, the COMEX Gold managed to recoup the bulk of the losses incurred on 3 Jun. If the RSI stays above the 50% threshold, we may see the recent bullish momentum extending higher and challenge the USD1,912.30 resistance. In the event the resistance is breached, the yellow metal may climb higher to test USD1,919.20, ie the high of June. Before it crosses above the stop loss, we maintain a negative trading bias.

Traders should maintain short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk management purposes, the initial stop-loss level is placed at USD1,912.30, ie the high of 3 Jun.

The immediate support is revised to USD1,872.50 – 21 May’s low – and followed by USD1,855.60, or 4 Jun’s low. On the upside, the nearest resistance remains at USD1,900, followed by USD1,912.30, ie the high of 3 Jun.

Source: RHB Securities Research - 8 Jun 2021