Maintain short positions. The COMEX Gold managed to find an interim base, rebounding USD8.00 to close at USD1,771.60. It started yesterday’s session at USD1,761.90. Sentiment was initially weak, which saw the commodity fall to the USD1,753.20 day low. Mild buying pressure emerged during the US session, where the COMEX Gold climbed to the intraday high of USD1,774.70 and last traded at USD1,771.60. At this juncture, the bulls are still defending the line at USD1,750. We will likely see the commodity moving sideways towards consolidations. Unless the momentum is able to lift it above USD1,790, sentiment will remain wary of further downside risks. As such, we are keeping to our negative trading bias.

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

The immediate support is marked at the USD1,750 round figure and followed by the USD1,735 whole number. The immediate resistance stays at USD1,790, while the higher hurdle remains at USD1,826.40, or 17 Jun’s high.

Source: RHB Securities Research - 1 Jul 2021