Maintain long positions given that the positive trend is progressing well. The COMEX Gold was under the bulls’ control in the latest session. It closed USD1.80 higher to settle at USD1,253.60. The session’s trading range was between USD1,249 and USD1,254.50. The commodity’s overall technical picture remains encouraging, as price movements over the recent sessions continue to indicate chances are high it may still be able to scale higher. Based on the daily RSI reading, the uptrend that started from the low of USD1,162.70 on 16 Aug is also not stretched yet. Hence, we keep our positive trading bias.

As there are no indications to suggest the uptrend has reached an end, 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.

Immediate support is expected at USD1,235.80, which was the low of 4 Dec. The second support is at USD1,202.40, or the low of 13 Nov. Moving up, 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 - 19 Dec 2018