Maintain long positions. The COMEX Gold gained USD2.60 to end at USD1,289.80 in the latest trade. This was after the commodity reached a low and high of USD1,284.10 and USD1,292.80. It has been in a rebounding phase after hitting a low of USD1,267.90 on 23 Apr. Towards the upside, should the downtrend line (as drawn in the chart) be breached towards the upside, this should likely signal that the precious metal’s multi-week correction – which started from the high of USD1,349.80 on 20 Feb – has reached an end. Consequently, this could mark the resumption of its long-term upward price trajectory. We maintain our long bias.

On anticipation that the COMEX Gold may still be able to extend its rebound, we continue to recommend traders stay in long positions. These were initiated at USD1,290.20, which was the closing level of 1 May. A stop-loss can be placed below the USD1,267.90 level.

The immediate support is eyed at USD1,267.90, or the low of 23 Apr. This is followed by USD1,236.50, ie the low of 14 Dec 2018. Meanwhile, the immediate resistance is set at USD1,330.80, which was the high of 25 Mar. This is followed by USD1,349.80, or the high of 20 Feb.

Source: RHB Securities Research - 7 May 2019