Maintain long positions as the bulls are still in firm control. We are revisiting the COMEX Gold’s long-term technical in this weekly chart piece. The precious metal broke away from its multi-year consolidation phase (that started from the high of USD1,380.90 on 6 Jul 2016) in June. Since then, its upward move has been extending. From the long-term perspective, the breakaway from the said multi-year consolidation phase is technically positive. While we note the RSI is flashing out an overbought reading, there are no adverse price actions that could indicate the commodity’s upward move is at the risk of experiencing a deep correction. Hence, we keep to our positive trading bias.

Given that the bulls are still in firm 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 riskmanagement 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. On the other hand, the immediate resistance is set at the USD1,550 mark. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 3 Sept 2019