Bulls are taking a breather; maintain long positions. The COMEX Gold failed to hold on to its earlier session’s positive tone, which reached a high of USD1,698. At the closing, the commodity settled USD29.00 lower at USD1,634.30. We see the latest weak performance as just an indication that the bulls are taking a breather after the prior two successive sessions’ strong upward move in prices. As a trend, we still believe chances are strong that the precious metal is in the process of extending its multi-month upward move. This is supported by the fact prices are holding up well above both the 50-day and 200-day SMA lines. Maintain our positive trading bias.

As we are not seeing signs of trend exhaustion, 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 maintained at USD1,630, the price point of 24 Mar. This is followed by the USD1,600 round figure. Moving up, the immediate resistance is set at USD1,707.80, the high of 9 Mar. This is followed by USD1,725.

Source: RHB Securities Research - 26 Mar 2020