Maintain short positions. The COMEX Gold saw a volatile session yesterday, bouncing off from the support level to add a marginal USD0.90 gain. It started Thurday’s session at USD1,891.40 before falling to the session low of USD1,871.80. During the US trading hours, it jumped to the USD1,903 session high before settling at USD1,896.40. With the latest price action, the COMEX Gold established a strong support at USD1,872.50 while the USD1,900 resistance has grown stronger. Having observed the commodity still trading above the 20-day SMA line, it may resume the bullish momentum to challenge the USD1,900 immediate resistance, followed by USD1,912.30. Unless it is able to cross the stop-loss mark, we stick to our negative trading bias.

We recommend traders stay with 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 unchanged 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 remains at USD1,900, followed by USD1,912.30, ie the high of 3 Jun.

Source: RHB Securities Research - 11 Jun 2021