Maintain short positions. The COMEX Gold struggled to stage a technical rebound last Friday, giving up most of its intraday gains to record a smaller gain of USD1.10, and settling at USD1,777.80. It started flat at USD1,775.70 and touched the day’s low of USD1,773.60 before rising to the day’s high of USD1,791 – jumping above the USD1,790 resistance level. However, selling pressure near the resistance level pushed it lower to close at USD1,777.80. The commodity may resort to more consolidations before a fresh attempt to test the immediate resistance. Meanwhile, the nearest support could be found near USD1,765. The yellow metal may continue to be bound by the tight range between the resistance and support, moving sideways until either boundary is breached. As the momentum remains weak, we are keeping our negative trading bias.

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

The immediate support exists at USD1,765, followed by the USD1,750 round figure. The immediate resistance is set at USD1,790, followed by USD1,826.40, or 17 Jun’s high.

Source: RHB Securities Research - 28 Jun 2021