Maintain long positions. The COMEX Gold saw the bullish momentum persist strongly yesterday after Wednesday’s rebound, adding USD30.50 to settle at USD1,902. The commodity opened at USD1,872 and merely touched the intraday low at USD1,869.70 before rebounding strongly upwards throughout the session. The strong bullish momentum drove the yellow metal towards hitting the USD1,904 day high before the close. The latest bullish price action is in line with our previous note and expected to continue its momentum in the coming sessions. The “higher high” bullish structure – coupled with the RSI pointing stronger towards the 70% level – poses the ability to propel the COMEX Gold higher towards printing the USD2,000 mark after reaching the USD1,950 level. With that, we stick to our bullish trading bias.

We recommend traders stick with the long positions initiated at USD1,818.50 or the closing level of 11 Jan. To manage the trading risks, the trailing-stop threshold revised higher to USD1,851.90.

The immediate support is set at USD1,879.50 – 16 Nov 2021’s high – and followed by USD1,851.90. On the upside, the first resistance is at the USD1,950 round number and followed by the USD2,000 psychological level.

Source: RHB Securities Research - 18 Feb 2022