Maintain short positions. The COMEX Gold saw the selling pressure take a pause yesterday, rebounding USD13.90 to settle at USD1,782.90. The commodity started the session on Monday at USD1,764.30. After mildly touching the USD1,764.10 session low, it rose to the USD1,786.90 session high before closing at USD1,782.90. Based on past records, if the COMEX Gold trades below the 50-day SMA line, it tends to shift the medium-term trend to become a downward movement. Before it trends lower, we do expect to see a technical rebound from the USD1,765 or USD1,750 support levels. To stage a technical rebound, the yellow metal has to cross and sustain above the USD1,786.90 immediate resistance. Potentially, it may retest the overhead resistace of the 50-day SMA line. As of now, we remain on a negative trading bias until the trailing stop is breached.

We recommend traders keep to the short positions initiated at USD1,873.30, or the closing level of 3 Jun. For risk-management purposes, the trailing-stop level is revised to USD1,790.

The immediate support is fixed at USD1,765 and followed by the USD1,750 round number. On the upside, the nearest resistance is pegged at USD1,786.90, ie the high of 21 Jun, and followed by the USD1,826.40 – 17 Jun’s high.

Source: RHB Securities Research - 22 Jun 2021