Maintain long positions until signs of deeper retracement emerge. The Comex Gold ended almost flat, it closed USD0.10 lower to settle at USD1,328.40. This was after it failed to keep to its earlier session’s gains – the high and low were registered at USD1,338 and USD1,325. The yellow metal has been consolidating above the immediate support of USD1,323 over the recent sessions, this was after a relatively sharp decline on 21 Feb. The risk of a deeper retracement to develop – to correct the upward move that started from 16 Aug 2018 – would increase should the said immediate support give way. Until this happens, we maintain our long bias.

As the bears are still not able to inflict damage to the commodity’s positive price trend, we continue to suggest traders 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.

Immediate support is expected at USD1,323.30, the low of 21 Feb. Breaking this may see market test USD1,306.40, which was the low of 7 Feb. On the other hand, 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 - 28 Feb 2019