Maintain short positions. The COMEX Gold remained in its consolidation zone last Friday after rising USD8.10 to settle at USD1,784.80. The commodity initially started off the session weaker at USD1,776.30 and dipped to the day’s low of USD1,770.40. The bulls seized the bargains near the intraday low, lifting the precious metal to touch the USD1,791 day high before the close. The COMEX Gold will continue to consolidate horizontally until it breaks either the USD1,800 resistance or USD1,762.20 support. However, we do note that the 20-day SMA line is declining and about to cross below the 50-day SMA line. The Bearish Crossover will indicate a bearish setup for the medium term. Coupled with the commodity trading below the 50-day SMA line, we retain our negative trading bias for now.

Traders are advised to keep to the short positions initiated at USD1,809, ie the closing level of 22 Nov. To protect the trading risks, the stop-loss threshold is fixed at USD1,825.

The immediate support remains at USD1,762.20 – 2 Dec’s low – and is followed by the USD1,750 whole number. Conversley, the nearest resistance is still at the USD1,800 round number, followed by USD1,819.30, ie the high of 26 Nov.

Source: RHB Securities Research - 13 Dec 2021