Will Gold Break The US$2400 Resistance Next Week?

The COMEX Gold remained on track with its bullish trajectory, rising USD24.30 to close stronger at USD2,372.70. RHB said the commodity began trading at USD2,351.70. After setting its foothold at the USD2,343.10 day low, it rose to the USD2,395.60 day high before closing at USD2,372.70.

The latest bullish price, coupled with the RSI pointing upwards, suggests the bullish momentum is increasing speed. Riding on the strong momentum, the COMEX Gold is setting its sights on breaking past the USD2,400 resistance. In a bullish setup, it is likely to see an upside breakout. Meanwhile, should the commodity resort to profit-taking, strong support will emerge at the USD2,300 level. Since the bullish momentum remains in play, the house said it made no changes to the positive trading bias.

The house is advising traders to hold on to the long positions initiated at the close of 1 Mar, ie USD2,095.70. To manage the trading risks, the trailing-stop threshold is raised to USD2,300 from USD2,200. The nearest support is revised to the abovementioned USD2,300 and followed by the USD2,250 level.

Conversely, RHB has put in the first resistance, pegging it at USD2,400 and followed by the MYR2,500 mark.

However in anticipation of US Federal Reserve key announcement on inflation, investors could continue to see gold as a safe haven hedge.

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