Maintain long positions, as the positive trend is still developing. The COMEX Gold reversed from its earlier session’s weak fortune, which saw it reached a low of USD1,724.20 – this was before the commodity rebounded to settle USD8.60 stronger at USD1,761.40. This can be seen as a positive price signal, as the COMEX Gold is gaining a stronger footing above the USD1,700 level – a previous resistance mark that the bulls managed to crack in the prior session after several attempts since February. The precious metal uptrend resumed after it tested the 200-day SMA line in March and, as indicated by the RSI reading, the upward move has yet to reach an overbought threshold. We maintain our positive trading bias.

As the trend is still extending, 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.

We revise the support levels to USD1,750 – derived from the latest candle – followed by USD1,720. Towards the upside, the immediate resistance is maintained at USD1,780, followed by the USD1,800 round figure.

Source: RHB Securities Research - 14 Apr 2020