Upward move may be resuming; maintain long positions. The COMEX Gold formed a white candle to settle USD29.10 higher at USD1,531.40. This was after it reached a low and high of USD1,496.90 and USD1,531.40. The latest session’s strong performance may indicate the commodity’s near two-week consolidation phase, that took place around the USD1,500 mark, may have reached an end. This implies its multi-month upward move may be resuming. With the bulls continue to show firm control over the price trend, we stay with our positive trading bias.

As the bias for the upward move to resume is strong, 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.

Towards the downside, 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. On the other hand, the immediate resistance is expected at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 26 Aug 2019