Gold may be staging a near-term rebound after recent selling pressure eased, but the broader technical picture remains bearish unless prices break decisively above US$4,400 an ounce, according to RHB Research.
COMEX gold opened Tuesday’s session at US$4,117.60, traded between US$4,116.30 and US$4,185.40, and settled at US$4,147.70.
RHB said fresh buying interest has started to emerge as selling pressure moderated, potentially allowing the precious metal to extend a counter-trend recovery towards immediate resistance at US$4,300.
However, the research house cautioned that resistance is typically strong during bearish phases and expects renewed downside pressure should negative momentum return.
In that scenario, gold could retreat towards the psychological US$4,000 level, with the next support seen at US$3,800.
The Relative Strength Index remains below the 50% level, reinforcing RHB’s view that the overall technical structure remains bearish.
RHB therefore maintained its negative trading bias and recommended traders continue holding the short position initiated at US$4,284.80, based on the Sept 23 closing price.
The stop-loss level remains at US$4,400, which RHB said would also mark the threshold for invalidating its bearish trading view.
Immediate resistance is seen at US$4,300, followed by US$4,400, while support levels are pegged at US$4,000 and US$3,800.
