The selling pressure on COMEX gold eased during Thursday’s trading session as fresh buying interest emerged, but RHB Research maintained its cautious outlook on the precious metal, citing a still-bearish technical setup.
According to RHB’s latest market report, COMEX gold started Thursday’s session at US$4,019 before moving between US$3,976.30 and US$4,060. The commodity eventually closed higher at US$4,047.60.
RHB said the yellow metal could extend its counter-trend rebound and move towards the resistance level of US$4,400. However, the research house noted that the resistance level could prove challenging if the broader bearish momentum remains intact.
“If the bearish momentum flows through in the coming sessions, we may see the commodity breach below the US$4,000 level and test the next support at US$3,700,” it said.
The report highlighted that the Relative Strength Index (RSI) remains below the 50% mark, indicating that the overall technical outlook for gold remains weak. As such, RHB maintained its negative trading bias until gold breaks above the US$4,400 level.
RHB recommended traders maintain their short position initiated at US$4,605.70, based on the closing price recorded on March 19. The research house placed the stop-loss threshold at US$4,400 to manage trading risks.
The immediate support level for COMEX gold is pegged at US$4,000, while the lower support level is identified at US$3,700. On the upside, the immediate resistance remains at US$4,400, with a higher resistance level at US$4,650.
