Keep long positions. The COMEX Gold retraced mildly yesterday, falling USD2.90 to settle at USD1,808.80 – still above the 50-day average line. It opened at USD1,810.20 and oscillated between USD1,814.60 and USD1,803.60 to close lower at USD1,808.80. The black body candlestick – with upper and lower shadows – signalled that profit-taking activities took place after a strong bullish momentum occurred during the recent sessions. We expect the mild retracement to continue towards the USD1,800 support before propelling higher towards breaching the USD1,815.70 immediate resistance. This is supported by the RSI still positioned in positive territory above the 50% level. With that, we maintain our positive trading bias.

We suggest traders maintain long positions at USD1,811.70, ie the closing level of 23 Dec. For risk management, the stop-loss threshold is set at USD1,785 or the low of 21 Dec.

The immediate support is set at the USD1,800 threshold, followed by USD1,785, ie 21 Dec’s low. Towards the upside, the nearest resistance is set at USD1,815.70 or 17 Dec’s high. This is followed by USD1,838.70, or 3 Sep’s high.

Source: RHB Securities Research - 28 Dec 2021