Maintain short positions. The COMEX Gold saw another neutral session yesterday after declining USD4.40 to settle at USD1,894.40. The commodity opened at USD1,901.60 and stayed flat for most of the session. It then saw brief momentum rising towards the USD1,906.90 session high before falling to the session low of USD1,885.70. Despite still moving in a whipsaw fashion for the last two sessions, the COMEX Gold managed to stay above the 20-day SMA line. And, since touching the USD1,855.60 low, the commodity has been treading on a “higher low” bullish price pattern, showing the balance of strength is leaning towards the bulls. We expect it to stay sideways for consolidations between USD1,912.30 and USD1,855.60 until either boundary is breached, which will then see a new trend forming. We keep to our negative trading bias till the stop loss is triggered.

Traders are recommended to retain the short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk-management purposes, the initial stop-loss level is fixed at USD1,912.30, ie the high of 3 Jun.

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

Source: RHB Securities Research - 9 Jun 2021