COMEX Gold surged on Tuesday, rising by US$16.40 to settle at US$2,631, breaking above the key resistance level of US$2,625. The commodity opened the session at US$2,616.30, reaching an intraday high of US$2,643.40 before retracing slightly to close at US$2,631.
RHB Investment Bank Bhd (RHB Research) noted the formation of a bullish candlestick with a "higher high" closing pattern, signalling that bullish sentiment is driving the rally. Following this breakout, the firm expects continued momentum, with the potential for gold to test the US$2,700 mark.
The Relative Strength Index (RSI) indicator also showed signs of upward movement, reinforcing the view that bullish momentum is gathering pace. As a result, RHB Research has shifted to a positive trading bias.
The bank reported that it closed out short positions initiated on Nov 12, at US$2,617.70, after the stop-loss at US$2,625 was triggered. They are now initiating long positions at the close of Nov 19, at US$2,631, with a stop-loss set at US$2,550 to manage trading risks.
The immediate support levels are US$2,550 and US$2,500, while the revised immediate resistance is now set at US$2,700, with the next level of resistance at US$2,800.
