Maintain long positions as the bulls are testing the immediate resistance. The COMEX Gold performed positively in the latest session. It ended USD7 higher at USD1,246.60, and the intraday tone was positive as the commodity generally moved higher throughout the session. The low and high were recorded at USD1,235.80 and USD1,247.50. The closing level was also marginally above the immediate resistance of USD1,246 – deemed as still valid. All in, the commodity’s positive price trend is still developing – without showing signs of exhaustion. Provided the commodity stays above both the 100-day SMA line and the uptrend line (drawn in the chart), chances are high the positive price trajectory could extend. Hence, we are maintaining our positive trading bias.

Pending a decisive upside breach of the said immediate resistance, we continue to recommend that traders keep to long positions at the USD1,216 mark. This was 14 Nov’s closing level. For risk-management purposes, a stoploss can be placed at the breakeven level.

We still peg the immediate support at USD1,202.40, or the low of 13 Nov. The following support is at USD1,184, which was the low of 24 Aug. Moving up, the immediate resistance is set at USD1,246, ie the high of 26 Oct. This is followed by USD1,272.30, or the high of 9 Jul.

Source: RHB Securities Research - 5 Dec 2018