Maintain long positions as indications are still positive. The COMEX Gold ended the latest session slightly weaker as it settled at USD1,247.40, implying a decline of USD2.50. Session’s trading range was between USD1,244.70 and USD1,251.70. As mentioned, price actions over the recent sessions are indicating the commodity is in the process of developing a minor consolidation around the USD1,246 mark – the previous immediate resistance. Once this process is completed, the commodity may still be able to scale higher. Hence, we keep our positive trading bias.

With the overall observations tilted towards extension of the uptrend (which has been in development since the low of USD1,162.70 on 16 Aug), we continue to recommend traders keep to long positions at the USD1,216 mark. This was 14 Nov’s closing level. For risk-management purposes, a stop-loss can be placed below the USD1,235.80 threshold.

We are eying the immediate support at USD1,235.80, which was the low of 4 Dec. This is to be followed by USD1,202.40, or the low of 13 Nov. On the other hand, the immediate resistance is set at USD1,272.30, or the high of 9 Jul. This is followed by USD1,286.80, ie the high of 19 Jun.

Source: RHB Securities Research - 14 Dec 2018