Maintain long positions. The COMEX Gold ended the latest session USD1.20 softer to close at USD1,562.90. The low and high were posted at USD1,556.30 and USD1,565.70. Prices over the past week or so suggest that the correction phase, which started from 8 Jan’s “Bearish Engulfing” formation, is stabilising. Towards the downside, the risk for an even deeper correction phase developing should still be contained – provided the USD1,552.10 immediate support is not breached to the downside. We maintain our positive trading bias.

As the bulls are still able to show control over the price trend, 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 USD1,552.10 level.

The immediate support is maintained at USD1,552.10, or the low of 21 Jan. This is followed by USD1,542.80, which was the low of 14 Jan. Meanwhile, the immediate resistance is set at USD1,574.80, ie the high of 21 Jan. This is followed by USD1,600 round figure.

Source: RHB Securities Research - 23 Jan 2020