Maintain long positions as the precious metal thrusts higher. The COMEX Gold spiked to settle the latest session USD27.80 higher at USD1,676.60. The high was posted at USD1,691.70. The closing level placed the commodity above the previous resistance marks of USD1,650 and USD1,670 – indicating a firm control by the bulls. While the RSI reading is flashing out an overbought reading of 82.2, there is still no negative price signal to indicate a possible interim top is in place. Hence, we are keeping our positive trading bias.

As the positive trend is still showing firmness, we maintain our long recommendation. We initiated these at USD1,586.40, ie the closing level of 13 Feb. For risk-management purposes, a stop-loss can be placed at USD1,620.

The immediate support is revised to USD1,655, derived from the latest candle. This is followed by USD1,640, or the price point from 21 Feb’s candle. Moving up, the immediate resistance is revised to USD1,670, followed by the USD1,700 round figure.

Source: RHB Securities Research - 25 Feb 2020