Immediate support is still holding up; Maintain long positions. The Comex Gold had an indecisive session near the immediate support area in the latest trading. It ended USD1 weaker at USD1,328.50, the low and high recorded at USD1,325.50 and USD1,332.40. At this juncture, the commodity’s medium-term upward bias that started from the low of USD1,162.70 on 16 Aug 2018 is still in place. Nevertheless, a downside breach of the said immediate support could increase the possibility that the precious metal may experience a deeper retracement – as a correction for the said medium-term upward move. Until signs of this emerge, maintain long bias.

In the absence of a price confirmation that a deeper retracement is developing, we continue to suggest traders to stay in long positions. We initiated this at the USD1,216 level, which was 14 Nov 2018’s close. For risk management purposes, a stop-loss can now be placed below the USD1,323.30 mark.

We are eying immediate support to emerge at USD1,323.30, the low of 21 Feb. The second support is pegged at USD1,306.40, which was the low of 7 Feb. Meanwhile, the immediate resistance is set at USD1,370.50, which was the high of 25 Jan 2018. This is followed by USD1,400, a round figure.

Source: RHB Securities Research - 27 Feb 2019