Maintain long positions as the upward move continues to develop. The COMEX Gold continued to scale higher in the latest session, adding USD5 to settle at USD1,534.30. The low and high were registered at USD1,526 and USD1,540.10. The positive session reinforces our bias that the precious metal has recently completed its multimonth correction phase and is now likely on track to extend its multi-quarter upward move. While the RSI is flashing out an overbought reading, there is no indication to suggest an interim top in the price. Premised on these, we are keeping our positive trading bias.

As the technical picture stays constructive, we continue to recommend traders to stay in long positions. We initiated these at USD1,529.30, the closing level of 31 Dec 2019. For risk-management purposes, a stop-loss can be placed below the USD1,500.00 mark.

The immediate support is expected to emerge at USD1,500.00, a round figure. This is followed by USD1,453.10, or the low of 12 Nov 2019. Conversely, the immediate resistance is set at USD1,566.20, which was the high of 4 Sep 2019. This is followed by USD1,600.00 – a round figure.

Source: RHB Securities Research - 3 Jan 2020