Upward bias is extending; maintain long positions. The COMEX Gold ceased its latest session on a positive note. It settled USD4.50 higher at the close to USD1,560.40, with the trading range between USD1,542.60 and USD1,566.20. This positive session is an encouraging follow-up from the previous session’s breakout from the USD1,550 level. While the RSI is still indicating an overbought reading, there are no adverse price actions that could suggest price exhaustion – as such, the multi-month upward move remains firmly in place. Hence, we keep to our positive trading bias.

As the bulls still have 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 risk-management purposes, a stop loss can now be placed below the USD1,450 mark.

The immediate support is expected to emerge at USD1,483, or the low of 13 Aug. This is followed by the USD1,406 mark, which was near the low of 1 Aug. Conversely, the immediate resistance is now expected at the USD1,600 threshold, followed by the USD1,650 level.

Source: RHB Securities Research - 5 Sept 2019