RHB Investment Bank Bhd (RHB Research) has reiterated its call to maintain short positions on COMEX Gold following a sharp profit-taking session last Friday. The research house highlighted that the precious metal fell US$14.30 to settle at US$2,654.70, pressured by bearish sentiment as it struggled against the overhead 50-day Simple Moving Average (SMA) line. The decline signals potential further downward movement toward the US$2,550 support level.

Gold opened the day at US$2,671.10 and initially reached an intraday high of US$2,681. However, selling pressure quickly emerged, dragging prices to a low of US$2,649.70 before a slight rebound to the closing level. RHB Research noted that the bearish price action, combined with a downward-trending Relative Strength Index (RSI), indicates resistance at the medium-term moving average. Additionally, the close below the 20-day SMA line supports the view that the counter-trend rebound may have stalled.

RHB Research stated that traders holding short positions initiated at the Dec 19 close of US$2,608.10 should maintain them. To manage risks, analysts recommend setting a stop-loss point at US$2,700. The commodity continues to trade below its key resistance level of US$2,700, reinforcing the bearish technical setup.

The downside support levels for COMEX Gold are identified at US$2,550 and subsequently at US$2,450, while upside resistance is pegged at US$2,700, followed by US$2,800. Analysts expect the renewed bearish momentum to sustain the downward trajectory, making further declines likely in the near term.