Commodity continues to scale higher despite being overbought; maintain long positions. The COMEX Gold ended the latest session on the strong side. It chalked in USD18.10 to settle at USD1,418.20 i.e near its six-year high. Session’s low and high were at USD1,403.60 and USD1,425.10. The closing level has also effectively crossed above the previous immediate resistance mark of USD1,400. While the recent weeks’ sharp upward move – after the completion of its multi-month consolidation phase – is flashing out an overbought Daily RSI reading, until there are signals to suggest price exhaustion, we keep to our positive trading bias.

With the bulls still in clear control over the price trend, 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.

Immediate support is revised to the USD1,400 level, a round figure. This is followed by USD1,336.60, which was the low of 17 Jun. Moving up, the immediate resistance is now pegged at USD1,432.90, the high of 28 Aug 2013, followed by USD1,500.

Source: RHB Securities Research - 25 Jun 2019