Maintain long positions, as the bulls are in control. The precious metal advanced USD5.60 to close at USD1,313.90 – the low and high were registered at USD1,304.70 and USD1,314.70. The positive session is supportive of our view that the COMEX Gold’s multi-week consolidation, which took place between 20 Feb and 4 Apr, has likely reached an end. This suggests that the medium-term upward move – which started from the low of USD1,162.70 on 16 Aug 2018 – is likely to extend. The daily RSI, which is edging and coming near to break its resistance line (as drawn in the chart), is also supportive of our positive bias. We maintain our long bias.

As the bias is tilted towards the extension of the medium-term positive price trend, we continue to recommend traders stay on in long positions. We initiated these positions at USD1,308.30. For risk-management purposes, a stop-loss can be placed below the USD1,281.50 threshold.

Immediate support is eyed at USD1,281.50, or the low of 24 Jan 2018. The second support is at USD1,270.30 – the high of 20 Dec 2018. Towards the upside, the immediate resistance set at USD1,330.80, which was the high of 25 Mar. This is followed by USD1,349.80, ie the high of 20 Feb.
 

Source: RHB Securities Research - 11 Apr 2019