Gold prices retreated in the latest trading session as investors took profit following recent gains, with RHB maintaining a positive trading bias as long as the precious metal holds above the US$4,300 support level.
COMEX gold futures fell US$47 to close at US$4,387.30, after opening at US$4,434.70. The commodity climbed to an intraday high of US$4,475.30 before retreating to a low of US$4,368.50.
RHB said the latest price action suggests that gold could be entering a corrective phase, with prices retreating towards the 20-day simple moving average (SMA).
The US$4,300 level is expected to provide immediate support. RHB said a rebound from this level would reinforce the bullish setup, while a sustained break below it could signal further downside.
As long as gold remains above US$4,300, RHB said it would maintain its positive trading bias.
The research house recommended that traders retain the long position initiated at US$4,273.30, based on the Aug 5 closing price.
To manage downside risks, RHB placed the stop-loss at US$4,300.
Beyond the immediate support, the next key support level is seen at US$4,100.
On the upside, gold faces immediate resistance at US$4,650, followed by a stronger resistance level at US$4,900.
Overall, RHB expects the current pullback to remain a correction within the broader positive trading setup, provided the US$4,300 support level holds.
