Maintain long positions, as the bulls are still consolidating the recent gains. The COMEX Gold continued to experience a minor consolidation during its latest session. It ended at USD1,723.80 after hitting a low and high of USD1,720 and USD1,745.80. The said consolidation set in after the commodity tested the USD1,750 immediate resistance recently. At this juncture, provided the important resistance-turned-support level of USD1,700 is not breached to the downside, the risk for the COMEX Gold to experience a deeper retracement will still be contained, ie the uptrend that resumed in March should still be considered intact. We keep our positive trading bias.

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 USD1,685 mark.

We are keeping the immediate support at USD1,700, which is followed by the USD1,676.50 threshold – the low of 9 Apr. Moving up, the immediate resistance is set at USD1,750. This is followed by the USD1,788.80 level.

Source: RHB Securities Research - 28 Apr 2020