Maintain short positions. The COMEX Gold saw a fresh “lower low” form yesterday despite the commodity paring the bulk of the losses to settle USD5.00 higher at USD1,861.40. It started Wednesday’s session at USD1,861 and moved sideways for most of this period. Post the US Federal Open Market Committee’s latest interest rate decision, the COMEX Gold plunged to the USD1,804.40 session low and last traded at USD1,812.60. It then saw the settlement price fixed at USD1,861.40, forming a long lower shadow. It has to break above the nearest resistance to confirm the reversal pattern. Otherwise, the impending momentum tends to be bearish. In the event it fails to establish a foothold above the USD1,850 support level, it may drop to the USD1,830 support mark and, subsequently, the USD1,800 pyschological level. As of now, we keep to our negative trading bias.

Traders are advised to maintain the short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk-management purposes, the stop-loss level is revised to USD1,879.70.

The immediate support is established at USD1,850 and followed by the USD1,830 mark. Conversely, the nearest resistance is set at 14 Jun’s high – USD1,879.70 – and followed by the USD1,900 round figure.

Source: RHB Securities Research - 17 Jun 2021