Bulls are still in firm control; maintain long positions. The COMEX Gold formed yet another white candle to settle USD3.20 higher at USD1,400.10. Trading took place within the range of USD1,386.10 and USD1,415.40. At this juncture, we still deem the immediate resistance of USD1,400 as valid – as the precious metal was unable to firmly close above this threshold. The Daily RSI reading of 80.9 is indicating the upward move has reached an overbought level. However, in the absence of any price reversal signals, we are keeping our positive trading bias.

Given that the overall upward bias is still in place, we continue to recommend traders to 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.

Towards the downside, the immediate support pegged at USD1,336.60, which was the low of 17 Jun. This is followed by USD1,300, a round figure. On the other hand, the immediate resistance is maintained at USD1,400, a round figure. This is followed by USD1,432.90, the high of 28 Aug 2013.

Source: RHB Securities Research - 24 Jun 2019