Maintain long positions, as a consolidation is taking place. The COMEX Gold eased by USD6.20 to settle at USD1,654.10. The low and high were recorded at USD1,630.70 and USD1,661. The precious metal’s price actions over the latest three sessions indicate that a relatively narrow consolidation phase is taking place. This consolidation is happening after the commodity experienced a recent sharp upward move. Overall, we believe the COMEX Gold is in the process of extending its multi-month uptrend. We maintain our positive trading bias.

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

We are keeping the immediate support at USD1,630, which was the price point of 24 Mar. This is followed by the USD1,600 round figure. Towards the upside, the immediate resistance is set at USD1,707.80, or the high of 9 Mar. This is followed by the USD1,725 threshold.

Source: RHB Securities Research - 30 Mar 2020