Maintain long positions as the upward move is extending. The COMEX Gold continued to extend its upward momentum in the latest session. At the closing, it settled USD94.80 stronger at USD1,667.50. The recent two sessions’ strong performance is likely signalling the commodity’s multi-month upward move is resuming. This was after it completed a relatively sharp correction in the first half of March. The positive bias is further supported by the fact that prices are now back above both the 50-day and 200-day SMA lines. Maintain our positive bias.

As the uptrend is extending, we recommend traders to stay in long positions. These were initiated at USD1,572.70, the closing level of 23 Mar. To manage the risk, a stop-loss can now be placed at the breakeven mark.

The immediate support is revised to USD1,630, the price point of the latest session. This is followed by the USD1,600 round figure. Moving up, the immediate resistance is now eyed at USD1,707.80, the high of 9 Mar. This is followed by USD1,725.

Source: RHB Securities Research - 25 Mar 2020