Maintain long positions. The COMEX Gold formed a white candle in the latest trading session, which at the closing crossed above the previous immediate resistance of USD1,300, albeit marginally. Session’s low and high were posted at USD1,292.80 and USD1,302.80, before it ended at USD1,301.20, a gain of USD10.70. This implies the overall upward move that started from the low of USD1,162.70 on 16 Aug is still firmly in place. While we noted the daily RSI is flashing out an overbought reading, until there are price signals to suggest exhaustion to the upward moves, we are keeping our positive trading bias.

As the upward trend continues to develop with no signs of reaching an end yet, we continue to recommend traders keep to long positions that we initiated at the USD1,216 mark – this was 14 Nov’s closing level. For riskmanagement purposes, a stop-loss can be placed below the USD1,267.40 threshold.

We maintain the immediate support at USD1,267.40, the low of 21 Dec 2018. This is followed by USD1,236.50, which was the low of 14 Dec 2018. Moving up, immediate resistance is now expected at USD1,332.40, the high of 11 May 2018. This is followed by USD1,370.50, the high of 25 Jan 2018.

Source: RHB Securities Research - 4 Jan 2019