Upward move continues to extend; maintain long positions. The COMEX Gold’s positive momentum continues to show signs of strength, adding USD24.40 to close at USD1,558.70 in the latest session. The low and high were recorded at USD1,536.70 and USD1,562.20. The positive session means the commodity’s multiquarter upward move is extending – this came after it recently competed a correction phase. While the RSI reading is indicating an overbought condition, in the absence of a price exhaustion signal, we are keeping our positive trading bias.

As the bulls are still showing a strong control over the price trend, we continue to recommend traders 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.

We are keeping the immediate support at USD1,500.00, a round figure. This is followed by USD1,453.10, or the low of 12 Nov 2019. Moving up, 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 - 6 Jan 2020