RHB Research has maintained its positive trading bias on COMEX gold despite the precious metal falling US$53 to US$4,373.70, as technical indicators suggest the market remains in a consolidation phase rather than a reversal of its broader bullish trend.
Gold opened at US$4,414.30 before trading within a wide range of US$4,322 to US$4,445.50 and eventually closing at US$4,373.70.
RHB said the latest price action showed that momentum remained weak, consistent with the Relative Strength Index (RSI), which continues to trend sideways.
The research house cautioned that gold could pull back towards its 50-day simple moving average (SMA) while the consolidation continues.
Nevertheless, both the 20-day and 50-day SMA lines remain on an upward trajectory, which RHB said continues to support the broader bullish technical setup.
Once buying momentum strengthens, the research house expects gold to resume its upward move towards the US$4,500 level.
RHB therefore maintained its positive trading bias and advised traders to retain the long position initiated at US$4,273.30, based on the Aug 5 closing price.
It placed the stop-loss level at US$4,300 to manage downside risk.
Immediate support is seen at US$4,300, followed by a lower support level of US$4,150.
On the upside, the first resistance is located at US$4,500, followed by the next resistance at US$4,700.
RHB’s technical view suggests that while gold may remain volatile and range-bound in the near term, the upward-sloping moving averages continue to favour a resumption of the broader bullish trend once momentum returns.
