The bulls are taking a pause around the USD1,500 mark; maintain long positions. The precious metal added USD8.90 to close at USD1,510.90. The trading range was between USD1,492.40 and USD1,525.20. The COMEX Gold has been consolidating around the USD1,500 mark over the recent sessions – this also happened at the same time as its Daily RSI flashes out an overbought reading. At this juncture, there is no indication to suggest that the commodity’s upward move has reached a turning point. As such, we keep to our positive trading bias.

As the COMEX Gold is showing signs of consolidating around the USD1,500 mark, 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.

The immediate support is still expected at USD1,406, or near the low of 1 Aug. This is followed by USD1,336.60, which was the low of 17 Jun. On the other hand, the immediate resistance is now set at the USD1,550 level. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 13 Aug 2019