Maintain long positions. The COMEX Gold surged on the back of strong demand, advancing USD17.50 to settle at USD1,848.30. The commodity started off Wednesday’s session at USD1,834.50, then retraced mildly to the day’s low of USD1,823. Sentiment became positive when the US trading session began, with the commodity jumping towards the day’s high of USD1,870.60. Despite mild profit taking activity near the neckline USD1,855.60, the commodity managed to close stronger at USD1,848.30, and record a 5-month high. As the commodity continued to print a “higher high” bullish pattern, the bears may seize the opportunity to take profit again near the immediate resistance. However, we expect the USD1,823 and USD1,813.80 levels to provide some strong downside support. As long as the support stays intact, we should see another leg up to cross above the neckline. Premised on this, we are keeping to our positive trading bias.

Traders advised to retain the long positions initiated at USD1,793.50, ie the closing level of 4 Nov. To mitigate downside risks, the trailing-stop is introduced at USD1,813.

The nearest support is sighted at USD1,823 – 10 Nov’s low – followed by lower support at USD1,813.80 or the low of 8 Nov. Conversely, the immediate resistance is pegged at the neckline of USD1,855.60, followed by the higher hurdle of USD1,870.60 ie the high of 10 Nov.

Source: RHB Securities Research - 11 Nov 2021