The COMEX Gold saw a temporary pause to its bearish momentum yesterday, climbing USD13.30 to close at USD2,639.30. The commodity opened at USD2,635.80. It dipped to a low of USD2,618.80 before buying pressure emerged to drive the price to an intraday high of USD2,648.90 ahead of the close. The presence of a bullish candlestick, with a rising RSI momentum indicator, signals the potential for a rebound in the upcoming sessions. RHB Investment Bank said the bears still have the technical upper hand as the COMEX Gold is trading below the 20-day SMA line. At this juncture, the 20-day SMA line will act as an immediate resistance level. A strong resistance level is expected at USD2,700.

The bank added for now, it is keeping the negative trading bias and recommends that traders hold on to the short positions established at the close of 8 Oct (USD2,635.40). To manage the trading risks, the stop-loss threshold is pegged at the abovementioned USD2,700.

The near-term support level remains at USD2,570, followed by USD2,500. The upside resistance is set at the abovementioned USD2,700, followed by the higher resistance at USD2,775.