Maintain long positions as the bulls are signalling a firm control. The COMEX Gold experienced a strong session in the latest trade, adding USD46.00 to close at USD1,637.70 – crossing above the previous resistance points of USD1,300 and USD1,330. The encouraging session is a positive follow-up from the prior session’s rebound from the low of USD1,576. This could mean the commodity’s one-week correction phase has completed and that it is now ready to resume its upward move. The positive outlook is also supported by both the 50-day and 200-day SMA lines which continue to trend higher.

As the bulls are signalling a good possibility for the uptrend to extend, we advise traders to 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 below the USD1,576 mark.

We revised the immediate support to USD1,625 – the price point of the latest session. This is followed by the USD1,600 round figure. Meanwhile, the immediate resistance is expected at USD1,645, followed by USD1,678.

Source: RHB Securities Research - 3 Apr 2020