Maintain long positions as the bulls are still standing firm. The COMEX Gold advanced USD14.70 to settle at USD1,545.60 – the low and high were recorded at USD1,529.20 and USD1,548.20. The positive session meant there was no negative follow-up for the “Shooting Star” formation that appeared in the prior session. Overall, while the RSI reading is still indicating an overbought reading, there are no strong adverse price actions that may signal the risk for a deep retracement to develop. Hence, we keep to our positive trading bias.

As the overall upward move is still 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 risk-management purposes, a stop-loss can now be placed below the USD1,406 mark.

Towards the downside, immediate support is 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. Meanwhile, the immediate resistance is set at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 28 Aug 2019