Maintain short positions. The COMEX Gold saw heightened selling pressure last Friday, falling USD16.80 to settle at USD1,879.60 – posting its first back-to-back weekly losses since 30 Apr. On Friday, it opened flat at USD1,901.90. After reaching the session’s high of USD1,906.20, it turned south and fell to the session’s low of USD1,876.10 before settling at USD1,879.60 – failing to retain the USD1,900 psychological level. As mentioned previously, the USD1,900 resistance level has become stronger, and as such, the commodity may head lower to retest the USD1,872.50 support level. The latest session also marked the first time the index closed below the 20- day SMA line since 14 Apr. This may indicate sentiment turning weaker, adding pressure on downside risks. Unless it stages a strong reversal, breaching above the resistance, we will maintain our negative trading bias.

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

The immediate support is placed at USD1,872.50 – 21 May’s low – followed by USD1,855.60, or 4 Jun’s low. Meanwhile, the nearest resistance is kept at USD1,900, followed by USD1,912.30, or the high of 3 Jun.

Source: RHB Securities Research - 14 Jun 2021