Maintain short positions. The COMEX Gold saw selling pressure accelerate yesterday, falling USD13.70 to settle at USD1,865.90. It started Monday’s session at USD1,879.60. After touching the day’s USD1,879.70 high, the bears dumped the commodity, pushing it to the day’s low of USD1,845.70. It found support near the USD1,855.60 level and rebounded to close at USD1,865.90. We observe that since reaching its 1 Jun high of USD1,919.20, the precious metal has been moving downwards in a “lower highs and lower lows” pattern. To reverse the bearish pattern, it has to breach the nearest resistance level of USD1,885 while keeping the support intact at USD1,855.60. As the RSI is pointing downwards, we expect sideways consolidation near the support level in the immediate term. Until the commodity crosses the resistance, we will stick to our negative trading bias.

Traders should hold on to the short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk management, the initial stop-loss level is adjusted to USD1,906.20, or the high of 11 Jun.

The immediate support is revised to USD1,865, followed by USD1,855.60, or 4 Jun’s low. Meanwhile, the nearest resistance is seen at USD1,885, followed by the USD1,900 psychological level.

Source: RHB Securities Research - 15 Jun 2021