COMEX Gold Retreating Towards The USD1,900 Support : RHB Research

The Research House is maintaining a “LONG” positions on the yellow precious metal’s derivatives. The COMEX Gold saw profit-taking activities extend for a third consecutive session after it retreated USD31.10 to settle at USD1,929.70 – breaching below the USD1,950 support.

The yellow precious metal started off Tuesday’s session at at USD1,953.70. After touching the USD1.956.90 day-high, it progressed lower
throughout the session, touching the USD1,908.10 day-low before closing at USD1,929.70.

As shown by the RSI which is falling off the trendline, the momentum has been decelerating. If the commodity breaches below the
USD1,900 support level, the research house expects strong selling pressure to bring it lower towards USD1,880.

For the immediate session, the COMEX Gold may gyrate near the 20-day SMA line, with the USD1,950 level acting as strong upside resistance.

RHB Research reiterates its positive trading bias until the commodity breaches the trailing-stop threshold. They also advise traders to keep the long positions initiated at USD1,818.50 or the closing level of 11 January.

To protect against the downside risks, the trailing-stop mark is set at USD1,900. The immediate support is revised to USD1,900 and followed by the USD1,880 whole number. The first resistance is pegged at USD1,950 and then the USD2,000 psychological level.

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