Maintain long positions, as the consolidation phase is still developing around the USD1,500 mark. The COMEX Gold ended the latest session softer by USD7.30 to close at USD1,502.30. Low and high were recorded at USD1,496.10 and USD1,508.10. We see the latest performance as part of the commodity’s narrow consolidation phase around the USD1,500 round figure – which has been in development over the past week or so. As of now, there are no adverse price actions that may suggest the commodity’s multi-month upward move has reached an end. Hence, we keep to our positive trading bias.

With the precious metal continuing to show resiliency 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.

Immediate support is set 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. Moving up, the immediate resistance is expected at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 23 Aug 2019