Maintain long positions as the positive trend remains intact. The COMEX Gold failed to hold on to its earlier session’s positive tone – at one point, the immediate resistance of USD1,550 was tested. At the closing the precious metal settled USD5.90 lower at USD1,536.90 – trading range was between USD1,528.60 and USD1,559.80. While the commodity failed in its second attempt in a span of a week to cross the said immediate resistance, at this juncture, there was no indication that could signal a possible end to the commodity’s upward move. Instead, we believe chances are higher that the commodity is merely consolidating around the said resistance mark. Hence, we keep to our positive trading bias.

As we are not seeing a crack in the upward move, 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 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. Meanwhile, the immediate resistance is set at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 30 Aug 2019