Maintain long positions as the consolidation phase is still developing. The COMEX Gold ended the latest session USD5.80 weaker at USD1,413. This was after it reached a low and high of USD1,409.80 and USD1,435.60. Broadly, the latest weak session can be seen as part of the commodity’s relatively narrow sideways consolidation phase, which has been in development over the past two weeks. For now, there are no negative price signals spotted that could suggest a possible price exhaustion. This ongoing consolidation phase is healthy to correct the precious metal’s prior multi-week upward move, which reached an overbought reading about two weeks ago. We maintain our positive trading bias.

With the technical picture remaining constructive, we retain our recommendation for 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.

Immediate support is set at USD1,336.60, which was the low of 17 Jun. This is followed by USD1,300, or the next round figure. Meanwhile, the immediate resistance is set at USD1,432.90, ie the high of 28 Aug 2013. This is followed by the USD1,500 threshold.

Source: RHB Securities Research - 12 Jul 2019