Maintain long positions. The COMEX Gold ended the session marginally better by USD0.20 at USD1,576. This came after it hit a low and high of USD52.81 and USD54.37. Overall, the precious metal’s price actions over the past two weeks suggest that the bulls are still in control over the price trend. The retracement that set in – following 8 Jan’s “Bearish Engulfing” formation – has probably completed, with the low of USD1,542.80 recorded on 14 Jan. Premised on this, we keep to our positive trading bias.

In the absence of an adverse price signal, 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 threshold.

The immediate support is eyed at USD1,552.10, or the low of 21 Jan. This is followed by USD1,542.80, which was the low of 14 Jan. Moving up, the immediate resistance is set at the USD1,600 round figure. This is followed by USD1,619.60, ie the high of 8 Jan’s “Bearish Engulfing” formation.

Source: RHB Securities Research - 30 Jan 2020