Maintain long positions. The COMEX Gold extended its upside movement last Friday, advancing USD23.30 to settle at USD1,816.80 – climbing to a 2-month high. The commodity initially started off Friday’s session at USD1,792.60. After the opening, it moved sideways for most of the session and formed an intraday low at USD1,785.30. The bullish momentum then picked up pace when the US trading session began, rising higher to reach the session’s high of USD1,820.10 before closing near that level. The latest session shows the bulls had overpowered the bears amid positive market sentiment. Hence, we expect the bullish momentum to follow through in the coming sessions and lift the commodity to test September’s high at USD1,836.90. At this stage, the 50-day SMA line will provide a strong downside support. Premised on the bullish momentum, we stick to our positive trading bias.

We recommend traders to maintain the long positions initiated at USD1,793.50, ie the closing level of 4 Nov. To mitigate downside risks, the initial stop-loss level is set at USD1,775.

The nearest support is marked at the USD1,800 round number, followed by USD1,783, or the low of 26 Oct. The immediate resistance is pegged at USD1,820.10 (5 Nov’s high), followed by USD1,836.90 (3 Sep’s high).

Source: RHB Securities Research - 8 Nov 2021