Maintain long positions as the overall upward move is still in place. The COMEX Gold traded within the band of USD1,430 and USD1,437.20 in the latest session. This was before it settled marginally higher by USD0.20 at USD1,433.40. This means that the precious metal is still not able to decisively break away from its near 3-week consolidation phase, after it attempted to do so in the previous two sessions. While the precious metal is still not able to signal a clear extension of its upward move, there is also no technical confirmation to suggest that its upward move has reached an end. Considering these, we keep to our positive trading bias.

In the absence of any price reversal signals, 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 now be placed below the USD1,390 mark.

We are keeping the immediate support target at USD1,390, or near the low of 1 Jul. This is followed by USD1,336.60, which was the low of 17 Jun. Meanwhile, the overhead resistance is set at the USD1,500 threshold. This is followed by the USD1,550 level.

Source: RHB Securities Research - 23 Jul 2019