Maintain long positions, as the technical picture remains constructive. The yellow metal ended the latest session USD2.30 lower at USD1,417.60. Trading took place in a relatively wide range between USD1,408.80 and USD1,426.10. We see the latest weak session as part of the COMEX Gold’s ongoing multi-week sideways consolidation phase. This phase was triggered after the commodity experienced a relatively-sharp upward move in-between end-May and early-July, which saw the Daily RSI reaching an overbought reading. In the absence of price exhaustion signals, we keep to our positive trading bias.

On the observation that the bulls are still having firm control over the COMEX Gold’s upward move, 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.

The 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 overhead resistance is expected at USD1,432.90, ie the high of 28 Aug 2013. This is followed by the USD1,500 threshold.

Source: RHB Securities Research - 17 Jul 2019