Keep long positions, as the commodity is still consolidating around the immediate resistance. The COMEX Gold ceased its latest trading slightly lower, by USD1.60 at USD1,342.90. The low and high were posted at USD1,336.60 and USD1,347.10. The commodity has been attempting to cross above the immediate resistance of USD1,349.80 twice over the past two weeks, only to be pushed back on reaching an overbought daily RSI reading recently. However, at this juncture, there are no clear price signals to indicate that the COMEX Gold’s upward move has reached an end. As such, we stick to our positive trading bias.

Given that the bias is still strong for the precious metal to extend its upward move, we continue to recommend 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 at the breakeven mark.

We are keeping the immediate support target 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 - 18 Jun 2019