Maintain long positions while tightening up risk management. The COMEX Gold ended the latest session slightly lower by USD1.60 at USD1,722.20. This was after it rebounded from an intraday low of USD1,704.10. The relatively good intraday rebound could potentially mark the end of the commodity’s recent sessions’ price retracement, which set in after it experienced a good rebound between 21-23 Apr. This implies the multi-month uptrend that resumed in March, after the 200-day SMA line was tested multiple times, could be ready to resume. This bias would stay provided the latest low is not breached to the downside. Maintain our positive trading bias.

As the positive trend is expected to extend, 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 USD1,704.10 mark.

The immediate support is still pegged at USD1,700, which is followed by the USD1,676.50 threshold – the low of 9 Apr. Towards the upside, the immediate resistance is set at USD1,750. This is followed by the USD1,788.80 level.

Source: RHB Securities Research - 29 Apr 2020