Maintain long positions as bulls are still pushing ahead. The COMEX Gold performed positively in the latest session. It gained USD2.80 to settle at USD1,290.50, while session’s low and high were recorded at USD1,287 and USD1,290.50. The positive session suggests that the commodity’s upward move that started from the low of USD1,162.70 on 16 Aug is still developing – without signs of price exhaustion. This is despite its daily RSI having now reached the overbought territory. Lending further support to this positive view is that it is now trading firmly above the 200-day SMA line (current reading: USD1,257). Until signs of price exhaustion are spotted, we are keeping our positive trading bias.

With the commodity’s positive price trend continuing to develop, we continue to recommend traders to keep to long positions which we initiated at the USD1,216 mark – this was 14 Nov’s closing level. For risk-management purposes, a stop-loss can now be placed below the USD1,267.40 threshold.

We revised the immediate support to USD1,267.40, the low of 21 Dec 2017. This is followed by USD1,236.50, which was the low of 14 Dec. Moving up, immediate resistance is now expected at the USD1,300 mark, a round figure. This is to be followed by USD1,332.40, the high of 11 May 2018.

Source: RHB Securities Research - 3 Jan 2019