Maintain long positions while keeping the risk management tighter. The COMEX Gold scored a second consecutive weak session, following a failure to cross the USD1,600.00 mark in its prior session. The precious metal ended USD5.90 lower at USD1,560.60, with trading ranging between USD1,547.40 and USD1,568.30. The negative session can be seen as a follow-up from the formation of the prior session’s “Bearish Engulfing” pattern. For now, the risk of a deeper correction developing may now happen – this is if the latest session’s low is breached to the downside. Until this happens, we keep to our positive trading bias. Premised on these factors, 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 below the latest session’s low. The immediate support is pegged at USD1,536.70, or the low of 3 Jan. This is followed by the USD1,500.00 level. On the other hand, the immediate resistance is set at USD1,619.60, or the high of 8 Jan’s “Bearish Engulfing” pattern. This is followed by the USD1,650.00 mark.

Source: RHB Securities Research - 10 Jan 2020