Maintain short positions. The COMEX Gold continued moving in a tight range yesterday, adding USD2.90 to settle at USD1,780.70. After starting Monday’s session at USD1,782, it moved horizontally between the day’s high and low of 1,786.10 and USD1,770.40, before closing at USD1,780.70. Although the commodity had less action, we observed that the RSI indicator is curving upwards, indicating that positive momentum is building up. The commodity needs to break past the USD1,790 immediate resistance level to see momentum accelerate. Otherwise, it will continue moving sideways, and face further correction. For now, we keep our negative trading bias.

We recommend that traders retain 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 is established at USD1,765, followed by the USD1,750 round figure. On the upside, the immediate resistance is set at USD1,790. The higher hurdle is set at USD1,826.40, or 17 Jun’s high.

Source: RHB Securities Research - 29 Jun 2021