Maintain long positions. The COMEX Gold settled USD2.10 higher at USD1,314 yesterday, this was after it swung between a low and high of USD1,310 and USD1,318.30. We continue to see the commodity’s upward trend as still intact, as it has been trading above the immediate support in the recent sessions. However, we note there is still a lack of strong price action at this juncture that could suggest the commodity is now ready to extend its upward move from this support mark. The risk for a deeper retracement to develop could increase, should the said immediate support level be breached. Nevertheless, based on the trend, we are keeping our positive trading tone.

As there is still no price confirmation for a deeper retracement to possibly develop, we continue to advise traders stay in long positions. We initiated this at the USD1,216 level, which was 14 Nov 2018’s close. For riskmanagement purposes, a stop-loss can be placed below the USD1,306.40 mark.

Immediate support is set at USD1,306.40, which was the low of 7 Feb. The second support is at USD1,281.50, the low of 24 Jan. Moving up, immediate resistance is eyed 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 - 13 Feb 2019