RHB Retail Research

COMEX Gold - Strong Rebound From the USD1,800 Level

Publish date: Wed, 05 Jan 2022, 05:56 PM
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RHB Retail Research

Maintain long positions. The COMEX Gold saw a strong rebound from the USD1,800 level, settling stronger at USD1,814.60. The commodity started off Tuesday’s session at USD1,801.10. It initially moved sideways, before falling to the session’s low of USD1,798.10. The tide turned during the US trading session, with strong buying momentum lifting it to the session’s USD1,817.20 high before the close. As such, the USD1,800 psychological level remains intact, and the commodity is still on course to trade above the 50-day SMA line. The price action showed that the bears respect the strong support at USD1,800. With the renewed momentum, we expect to see follow through price action to test the USD1,815.70 resistance level. We hold on to our positive trading bias.

Traders are recommended to keep the long positions at USD1,811.70 – the closing level of 23 Dec 2021. To minimise downside risks, the stop-loss is set at the USD1,800 psychological level.

The immediate support is marked at USD1,800, followed by USD1,785 or the low of 21 Dec 2021. On the upside, the nearest resistance is eyed at USD1,815.70 (17 Dec 2021’s high), followed by USD1,833, or the high of 3 Jan.

Source: RHB Securities Research - 5 Jan 2022

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