Maintain short positions. Amidst selling pressure accelerating, the COMEX Gold failed to retain the 50-day SMA line and nose-dived USD86.60 to settle at USD1,774.80 – recording the worst session in 2021. Despite a strong rebound on Wednesday, the commodity started Thursday’s session with a gap down at USD1,812.30. After touching an intraday high of USD1,826.40, selling pressure resumed and dragged the commodity towards USD1,767.90 or the day’s low, before closing at USD1,774.80 – breaking below the USD1,800 level. The USD1,800-pt mark will act as the psychological resistance now. The precious metal needs to reclaim that level to see a change in sentiment. Otherwise, the COMEX Gold will continue to experience selling pressure. Until it forms an interim support, we remain wary of the downside risk and keep to our negative trading bias.

We recommend traders to maintain the short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk-management purposes, the trailing-stop is placed above USD1,815.

The immediate support is marked at USD1,765 and followed by the USD1,750 round number. Meanwhile, the nearest resistance is set at USD1,800 – and followed by the USD1,826.40 the high of 17 Jun.

Source: RHB Securities Research - 18 Jun 2021