Maintain short positions. COMEX Gold’s positive momentum continued yesterday, climbing USD14.40 to settle at USD1,778.20. The yellow metal started Tuesday’s session at USD1,765.50. After dipping to the USD1,758.30’s session low, it reversed and jumped to test the intraday high of USD1,782.80. It then drifted sideways before closing at USD1,778.20. The second consecutive bullish session showed that the bulls are gaining control while selling pressure is tapering. However, pending the latest monetary policy due to be announced by the US Federal Reserve, expect volatility to increase during Wednesday’s session. If the commodity breaks past the USD1,780 immediate resistance, sentiment will turn positive. Otherwise, COMEX Gold may drift lower to test USD1,758.30 support. As of now, we are keeping to our negative trading bias until the stop-loss is breached.

Traders are advised to keep their short positions initiated at USD1,756.70, or the closing level of 16 Sep. To mitigate trading risks, the stop-loss is fixed at USD1,780.

The nearest support is seen at USD1,758.30, the low of 21 Sep, followed by USD1,745.50, or 16 Sep’s low. The immediate resistance is pegged at USD1,780, followed by USD1,797.30, or 16 Sep’s high.

Source: RHB Securities Research - 22 Sept 2021