Maintain long positions, until signs of a deeper retracement appear. The COMEX Gold ended the latest session marginally lower USD0.20 at USD1,320.70 – this was after it swung between a low and high of USD1,313.20 and USD1,322.20. The precious metal’s price movements in recent sessions suggest that the bulls are taking a breather after the prior upward moves. For now, until there are clearer negative price signals to suggest a deeper retracement is developing – ie the commodity’s upward move, which started from the low of USD1,162.70 on 16 Aug 2018, has reached an end – we are keeping our positive trading tone.

With the bias that the uptrend is still firmly in place, we continue to advise traders stay in long positions. We initiated this at the USD1,216 mark, which was 14 Nov 2018’s close. For risk-management purposes, a stop-loss can be placed below the USD1,281.50 threshold.

Immediate support is still expected at USD1,281.50, which was the low of 24 Jan. The following support is at USD1,267.40, or the low of 21 Dec 2018. Moving up, the immediate resistance is still expected at USD1,332.40, ie the high of 11 May 2018. This is followed by USD1,370.50, which was the high of 25 Jan 2018.

Source: RHB Securities Research - 8 Feb 2019