Keep long positions. The COMEX Gold retraced strongly towards the intraday low before recouping almost all of yesterday’s losses to close just USD5.10 lower at USD1,805.80 – barely above the 50-day average line. It opened at USD1,806.60 and then mildy touched the USD1,808 day high before shifting southwards. The COMEX Gold then fell sharply towards the day’s bottom at USD1,789.10 before the commodity rebounded strongly to recoup almost all the intraday losses. It closed slightly below the opening at USD1,805.80. The small black body candlestick with long lower shadow – displaying a strong intraday rebound from below USD1,800 to above it – showed strong profit-taking or pullbacks took place yesterday. The buying pressure during the later session suggests the bulls are still on track to climb northwards after consolidating sideways between USD1,800 and USD1,815.70 in the immediate term. 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 USD1,800. The immediate support is placed at the USD1,800 threshold, followed by USD1,785 or 21 Dec’s low. Towards the upside, the nearest resistance is pegged at USD1,815.70 – 17 Dec’s high – and then USD1,838.70, ie 3 Sep’s high.

Source: RHB Securities Research - 30 Dec 2021