Maintain long positions as positive trend is still showing signs of developing. The COMEX Gold performed positively in the latest session. At the closing, it settled USD10.40 higher at USD1,251.80. The intraday tone was also positive as it generally moved higher, with the low and high recorded at USD1,239.40 and USD1,252. The positive session may potentially mark an end to the commodity’s 1-week consolidation around the previous multiweek resistance of USD1,246. The daily RSI reading of 59.91 is also indicating that the positive trend that started from the low of USD1,162.70 on 16 Aug is still not stretched – implying headroom for potential further upside. Hence, we keep our positive trading bias.

With the positive trend still showing encouraging signs of extending, we continue to recommend traders to 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 below the USD1,235.80 threshold.

We continue to peg the immediate support at USD1,235.80, which was the low of 4 Dec. Breaking this may see the commodity test 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 - 18 Dec 2018