Bulls are in firm control; maintain long positions. The COMEX Gold performed strongly to end the latest session at USD1,752.80 – indicating a gain of USD98.50. The closing level placed the precious metal firmly above the previous resistance level of USD1,700 – this is technically significant as the precious metal had attempted to cross this mark a few times since February. The uptrend resumed after the commodity tested the 200-day SMA line multiple times in March. Both the 50-day and 200-day SMA lines which continue to trend higher are indicating a positive bias – but without showing an overbought situation as indicated by the RSI. Maintain our positive trading bias.

With the uptrend 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 USD1,676.50 mark.

Support levels are eyed at USD1,720 and USD1,700 – both are derived from the latest candle. Meanwhile, the immediate resistance is now pegged at USD1,780, followed by the USD1,800 round figure.

Source: RHB Securities Research - 10 Apr 2020