Trend is still positive; maintain long positions. The COMEX Gold softened USD2.80 to cease at USD1,542.80 in the latest trade. The low and high were registered at USD1,535.60 and USD1,550.20. We treat the latest performance as part of the precious metal’s ongoing narrow consolidation phase, which has been in development over the past several sessions – starting from 26 Aug’s “Shooting Star” formation. This consolidation phase is healthy to correct the commodity’s previous upward move. Maintain our positive trading bias.

On the observation that the bulls are still having strong control over the price trend, 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 USD1,450 mark.

Immediate support is pegged 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. Towards the upside, the immediate resistance is set at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 29 Aug 2019