The COMEX Gold reverted to consolidation after it gave up USD17.90 to close lower at USD4,051.80. RHB Research said it observed the positive price action failed to follow through during Wednesday’s session, indicating the market sentiment remains weak. The commodity initially began trading at USD4,059.80. After trading between USD4,089.10 and USD4,023.30, it closed at USD4,051.80 with a bearish candlestick.
Premised on the negative momentum, the yellow metal may fall below the USD4,000 support level. A bearish breakout will attract further selling pressure, dragging the commodity towards USD3,700. Meanwhile, the 20-day SMA line stays as overhead resistance and should block the precious metal’s upside rebound. Based on the technical setup, the house stays on the bearish trading bias.
RHB has recommend traders to stay on the short position initiated at USD4,605.70, ie the close of 19 Mar. To manage the
trading risks, the stop-loss threshold is fixed at USD4,400. The first support is marked at USD4,000, followed by USD3,700. On the upside, the first resistance remains unchanged at USD4,200, followed by USD4,400.
