Upward move is extending; maintain long positions. The COMEX Gold continued to extend its positive price performance in the latest session, after breaking away from its multi-week consolidation phase in previous session. This is a positive follow-up. The session’s low and high were recorded at USD1,462.50 and USD1,480.90, before ending at USD1,478.30, indicating a gain of USD7.70. While the daily RSI is flashing an overbought reading, in the absence of price exhaustion signals, we keep to our positive trading bias.

With the bulls still showing dominance over the price trend despite the overbought situation, we retain our recommendation for traders to stay in long positions. We opened these positions at USD1,333.60, which was the closing level for 5 Jun. For risk-management purposes, a stop-loss can now be placed below the USD1,406 mark.

Towards the downside, immediate support is set at USD1,406, or near the low of 1 Aug. This is followed by USD1,336.60, which was the low of 17 Jun. Meanwhile, the immediate resistance is set at the USD1,500 threshold. This is followed by the USD1,550 level.

Source: RHB Securities Research - 7 Aug 2019