Maintain long positions. The COMEX Gold failed to break past the resistance yesterday as it declined USD12.50 to settle at USD1,854.10. The commodity initially started off in positive territory, opening at USD1,864.90 and rising to the USD1,879.50 day high. Moving into the US trading session, we saw strong profittaking taking place, which resulted in a retracement towards the USD1,851 day low before the close in negative territory. This latest session affirmed that a strong resistance has formed between USD1,880 and USD1,870.60. With the most recent bearish candlestick, it is very likely that the negative momentum may follow through and we could see a downward correction. We maintain the view that USD1,845.10 will lend strong support. Despite the yellow metal undergoing a mild correction, we stick to our positive trading bias until the trailing stop is breached.

We recommend traders hold on to long positions initiated at USD1,793.50 or the closing level of 4 Nov. To limit the downside risks, the trailing-stop threshold is revised to USD1,845 from USD1,835 previously.

The immediate support is marked at USD1,845.10 – 11 Nov’s low – and followed by lower support at USD1,823, ie 10 Nov’s low. The first resistance seen at USD1,870.60 – 10 Nov’s high – with a higher hurdle at USD1,880.

Source: RHB Securities Research - 17 Nov 2021