No sign of a deeper correction developing; maintain long positions. The COMEX Gold advanced USD10.00 to close at USD1,566.50 in the latest session. Trading ranged between USD1,555.50 and USD1,567.50. The positive session is a follow-up from the recent test of the immediate support of USD1,547.40 – thus indicating the risk for the precious metal to experience a deeper correction is still contained. This bias should stay as long as the immediate support of USD1,547.40 is holding up. Maintain our positive trading bias.

In the absence of a negative price confirmation to indicate a deeper correction phase is developing, 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 USD1,547.40 mark.

We are keeping the immediate support at USD1,547.40, which was the low of 9 Jan. This is followed by the USD1,500.00 level. Conversely, the immediate resistance is eyed at USD1,619.60, which was the high of 8 Jan’s “Bearish Engulfing” pattern. This is followed by the USD1,650.00 mark.

Source: RHB Securities Research - 20 Jan 2020