Minor pause is taking place; maintain long positions. The COMEX Gold settled the latest trade marginally better by USD0.60 at USD1,684.30. This was as it managed to rebound from a low of USD1,670.70. Despite the prior session’s sharp negative intraday price reversal, the latest session’s price performance suggests no strong negative follow-up from that, thus the risk for the precious metal to experience a deep correction is contained for now. The ongoing correction is healthy as it is meant to correct the previous near one-week’s sharp upward move.

As a trend, the multi-month uptrend that resumed after the 200-day SMA line was tested in mid-March still stands firmly – supported by a healthy RSI reading. Maintain our positive trading bias. As we observe no clear price reversal signal, 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 USD1,640 level.

Immediate support is kept at USD1,680, derived from 6 Apr’s candle. This is followed by USD1,660. Conversely, the immediate resistance is expected at the USD1,700 round figure, followed by USD1,720.

Source: RHB Securities Research - 9 Apr 2020