Technical picture remains positive despite being overbought; maintain long positions. The COMEX Gold registered a positive session. At the closing, it added USD13.70 to settle at USD1,521.60 – the low and high were at USD1,499 and USD1,528.40. The precious metal has been hovering around the USD1,500 mark over the recent sessions – suggesting a possible minor consolidation is developing. This is deemed healthy – considering that its daily RSI reading is still showing an overbought reading. Until adverse price actions emerge that could suggest the risk for a deeper retracement is developing, we keep to our positive trading bias.

As the bulls are having good control over the price trend, 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 riskmanagement purposes, a stop-loss can now be placed below the USD1,406 mark.

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. On the other hand, the immediate resistance is pegged at the USD1,550 level. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 15 Aug 2019