Maintain long positions as consolidation is still taking place around the USD1,500 mark. The latest session saw the precious metal erase USD12 to close at USD1,505.50. This was after it reached a low and high of USD1,497.30 and USD1,517.10. Based on the Daily chart, price actions over the recent sessions are indicating a consolidation phase is developing around the USD1,500 mark. This is deemed healthy to correct its previous upward phase, which took place between early August and mid-August. In the absence of adverse price actions that could signal a price reversal, we stick to our positive trading bias.

On the basis that the commodity’s positive price trajectory is still showing signs of firmness, 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.

Immediate support is pegged at USD1,406, or near the low of 1 Aug. This is followed by USD1,336.60, which was the low of 17 Jun. Conversely, the immediate resistance is set at the USD1,550 level. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 20 Aug 2019