Continues to scale higher; maintain long positions. The COMEX Gold extended its gains in the latest session, adding USD8.00 to close at USD1,645.70 – slightly above the previous immediate resistance of USD1,645. The encouraging session is a positive price continuation after the commodity recently reached a low of USD1,576 – this lends support to our bias that the commodity’s one-week correction phase, which has taken the form of a retracement, has likely completed. This means chances are high for the multi-month upward move to extend – supported by the RSI reading which is picking up. Hence, we are keeping our positive trading bias.

On the observation that the upward move is still developing, 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 set the immediate support at USD1,625 – the price point of 2 Apr. This is followed by the USD1,600 round figure. On the other hand, the immediate resistance is set at USD1,678, near the high of 26 Mar. This is followed by the USD1,700 round figure.

Source: RHB Securities Research - 6 Apr 2020