RHB Research has maintained its bullish trading bias on COMEX gold as selling pressure eases and technical indicators point to renewed upward momentum, with the precious metal potentially retesting the US$4,700 resistance level.
Gold gained US$10.30 during Thursday’s session to close at US$4,627.40 as selling pressure tapered off.
In the subsequent session, the precious metal opened at US$4,614.30 and traded between a high of US$4,660.80 and a low of US$4,581 before settling at US$4,627.80.
RHB said the latest positive price action, combined with the Relative Strength Index (RSI) turning upwards again, suggests bullish momentum is beginning to reaccelerate.
On this basis, gold could extend its advance and retest the immediate resistance at US$4,700.
“In a bullish setup, the precious metal may stage an upside breakout and extend the bullish trajectory,” the research house said.
A decisive break above US$4,700 could open the way towards the next resistance level at US$4,900.
RHB said the technical structure continues to favour further upside, with both the 20-day and 50-day simple moving average (SMA) lines trending higher.
The upward-sloping moving averages reinforce the broader bullish setup despite recent volatility in gold prices.
On the downside, US$4,500 remains the first key support level.
Should selling pressure intensify and gold fall below that threshold, the next support is seen at US$4,300.
RHB maintained its recommendation for traders to hold the long position initiated at US$4,273.30, based on the closing price on Aug 5.
The research house has set its stop-loss threshold at US$4,300 to manage downside risks.
Overall, RHB sees the immediate technical range defined by support at US$4,500 and resistance at US$4,700, with the next respective levels at US$4,300 and US$4,900.
With momentum indicators strengthening and the key moving averages continuing to trend upwards, RHB maintained its bullish trading bias on COMEX gold.
