Maintain long positions as the trend is still positive. The COMEX Gold briefly tested the immediate resistance of USD1,657.10 with an intraday high of USD1,668.20, before scaling back to settle USD5.10 higher at USD1,648.20. The commodity has been experiencing a minor pause over the latest three sessions – this is meant to correct its previous sharp upward move which reached an overbought RSI reading recently. Until signs for a deeper correction emerge, we are keeping our negative trading bias.

With no signs pointing towards a potential deeper correction, 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.

We pegged the immediate support at USD1,627, derived from 25 Feb’s candle. This is followed by the USD1,600 round figure. Towards the upside, the immediate resistance is revised to USD1,657.10, the high of 26 Feb, followed by USD1,670.

Source: RHB Securities Research - 28 Feb 2020