Maintain long positions as the long-term picture remains encouraging. The COMEX Gold managed to reverse its earlier session’s weakness to settle USD1.90 higher at USD1,331.20. Trading was in the range of USD1,323.60 and USD1,333.60. The precious metal’s technical picture remains encouraging, after it completed its multi-month consolidation phase recently. The latest three sessions’ price actions resemble the characteristics of a minor consolidation around the immediate resistance of USD1,349.80. Once this minor correction phase is over, the metal is likely to extend its upward move. We maintain our positive trading bias.

As the overall price action is still considered healthy, we continue to recommend traders to stay in long positions. We opened these positions at USD1,333.60, the closing level of 5 Jun. For risk management purposes, a stop-loss can be placed below USD1,267.90.

We see the immediate support emerging at USD1,300, a round figure. This is followed by USD1,267.90, or the low of 23 Apr. Moving up, the immediate resistance is set at the USD1,349.80 threshold, ie the high of 20 Feb. This is followed by USD1,380.90, which was the high of 6 Jul 2016.

Source: RHB Securities Research - 12 Jun 2019