Maintain long positions, as the commodity is holding up above the immediate support. The COMEX Gold managed to stage a positive intraday price reversal. At one point, the commodity tested the immediate support of USD1,566.20 with a low of USD1,563.30, before rebounding to settle USD5.40 better at USD1,580.50. The positive price reaction from the re-testing of said immediate support suggests that the bulls remain in firm control over the price trend. It also means there was no negative follow-up from the prior session’s “Shooting Star” formation, which appeared on the back of the overbought RSI reading. We maintain our positive trading bias.

As the uptrend is still not signalising an exhaustion, we continue to recommend traders stay in long positions. We initiated these at USD1,529.30, or the closing level of 31 Dec 2019. For risk-management purposes, a stop-loss can now be placed at the breakeven mark.

We are keeping the immediate support at USD1,566.20, which was the high of 4 Sep 2019. This is followed by USD1,536.70, or the low of 3 Jan. Meanwhile, the immediate resistance is pegged at USD1,600.00. This is followed by USD1,619.70, which was the high of 26 Feb 2013.

Source: RHB Securities Research - 8 Jan 2020