Maintain long positions as chances are high for an upward extension. The COMEX Gold added USD5.60 to close at USD1,336.80. Trading took place within the range of USD1,329.80 and USD1,342.30. Based on price actions in recent sessions, it is likely that the metal is undergoing a narrow sideways consolidation around the immediate resistance of USD1,349.80. This was after it experienced a sharp upward move recently, post completing its multi-month consolidation phase in the form of a flag formation. Once this healthy pause is completed, chances are high that the precious metal would extend its upward move. We maintain our positive trading bias.

As recent price actions are still flashing good control by the bulls, we continue to recommend that traders stay in long positions. We opened these positions at USD1,333.60, which was the closing level of 5 Jun. For risk management purposes, a stop-loss can be placed below USD1,267.90.

Immediate support is set at USD1,300, a round figure. This is followed by USD1,267.90, or the low of 23 Apr. On the other hand, 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 - 13 Jun 2019