Maintain short positions. The COMEX Gold saw bullish momentum picking up yesterday, rebounding USD5.20 to close at USD1,776.80. It started Thursday’s session at USD1,770.80 and fell to the session’s low of USD1,765.90. Tracking its commodity peers, it jumped to the USD1,783.40 session high before settling at USD1,776.80. For now, the commodity has managed to establish a foothold above the USD1,750 support level. If bullish momentum extends in the coming session, it may retest the USD1,790 resistance level. Until then, the index is likely to move sideways and consolidate. We keep our negative trading bias.

Traders should stick with the short positions initiated at USD1,873.30, or the closing level of 3 Jun. To manage risks, the trailing-stop level is set at USD1,790.

The immediate support is adjusted to USD1,763, followed by the USD1,750 round figure. Meanwhile, the immediate resistance is eyed at USD1,790, and the higher hurdle remains at USD1,826.40, or 17 Jun’s high.

Source: RHB Securities Research - 2 Jul 2021