Maintain long positions. The COMEX Gold ended the latest session at USD1,719.20, which was near the session’s lower-bound range of USD1,714 and USD1,739.20. Despite not being able to hold on to most of the intraday gains, we believe chances are high that the commodity is ready to resume its uptrend. This is because we think it has completed its near 1-week’s minor correction on 28 Apr, which saw the COMEX Gold reached a low of USD1,704.10 – near to testing the important resistance-turned-support level of USD1,700. All in, the uptrend that resumed in March is still not showing signs of forming a top or being at risk of experiencing a deeper correction. Hence, we maintain 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 USD1,704.10 mark.

The immediate support is maintained at USD1,700. Breaking this may see market test the USD1,676.50 threshold, which was the low of 9 Apr. Conversely, the immediate resistance is set at USD1,750 – this is followed by the USD1,788.80 level.

Source: RHB Securities Research - 30 Apr 2020