Maintain long positions, as the bulls are still in firm control. The COMEX Gold ceased its latest session by adding USD4.20 – closing at USD1,509.70. The session’s trading range was between USD1,497 and USD1,512.70. Despite the positive showing, we still believe the commodity’s narrow consolidation phase around the USD1,500 level – which has been developing over the past week – is still incomplete and likely to extend in the coming sessions. This is deemed healthy, as it corrects the COMEX Gold’s previous upward move. As long as there are no adverse price actions from the USD1,500 mark, which may indicate a price rejection, we stay with our positive trading bias.

As we continue to see the upward price trend as still firmly intact, 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 eyed at USD1,406, or near the low of 1 Aug. This is followed by the USD1,336.60 level, which was the low of 17 Jun. Conversely, the immediate resistance is set at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 22 Aug 2019