Maintain long positions, as the bulls are seeking a firm breakout from the sideways consolidation. The yellow metal attempted a breakaway from its 2-week sideways consolidation phase during this latest session. The trading range was wide – in-between USD1,421.90 and USD1,456 – before closing USD4.80 higher at USD1,434.50. The closing level also placed the COMEX Gold slightly above the previous USD1,432.90 immediate resistance. This said breakout’s attempt is a positive indication, as it suggests that the commodity’s upward move is still firmly in place. Hence, we keep to our positive trading bias.

The bulls are still showing firm control over price trends. As such, 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 riskmanagement purposes, a stop-loss can now be placed below the USD1,390 mark.

The immediate support is revised to USD1,390, or near the low of 1 Jul. This is followed by USD1,336.60, which was the low of 17 Jun. Moving up, the overhead resistance is now pegged at the USD1,500 threshold. This is followed by the USD1,550 level.

Source: RHB Securities Research - 19 Jul 2019