RHB Investment Bank Bhd (RHB Research) maintained its long position on COMEX gold and expects the commodity to break above US$4,400 before extending towards US$4,650, while KCM Trade chief market analyst Tim Waterer said gold should remain supported above US$4,300 in the near term.
COMEX gold surged US$99.10 on Friday to close at US$4,367.10 after trading between US$4,257.70 and US$4,399.50. RHB Research said the strong bullish candlestick and upward-rounding RSI showed that buyers remained in control, supporting its positive trading bias.
The research house identified US$4,100 as immediate support and US$3,950 as the lower support level, with a stop-loss at US$3,950 for the long position initiated at US$4,273.30 on Aug 5.
Spot gold was little changed at US$4,346.85 an ounce on Monday after reaching its highest level since June 17 on Friday following weaker-than-expected US jobs data. US gold futures rose 0.2% to US$4,406.80.
The weaker labour market has reduced expectations of an imminent Federal Reserve rate hike, supporting gold as lower interest rates make non-yielding bullion more attractive.
Markets are now awaiting US consumer price data on Wednesday and producer price data on Thursday for further clues on the Fed’s rate path. Waterer said softer readings could strengthen the case for a rate hold and support further upside in gold, although renewed Middle East tensions and higher oil prices could pressure the metal.
