Multi-year uptrend likely to extend; initiate long positions. The COMEX Gold ended the latest session on a strong footing – adding USD13.40. The high was posted at USD1,779. The positive performance placed the precious metal above the previous USD1,754.90 immediate resistance – hence, in our view, signalling the completion of the multi-week sideways consolidation phase. By extension, chances are now high for the commodity to extend its multi-year uptrend. Consequently, we switch our trading bias to positive.

Our previous short positions were initiated on 21 May after the COMEX Gold crossed below the USD1,741.90 mark, and closed out at USD1,754.90 during the latest session. As the commodity is showing good signs of resuming its uptrend, we initiate long positions at the latest close. For risk-management purposes, a stop-loss can now be placed below the USD1,728.30 mark.

The immediate support is revised to USD1,753.50, which was derived from the latest low. This is followed by USD1,728.30, or the low of 19 Jun. Moving up, the immediate resistance is now pegged at USD1,788.80, ie 14 Apr’s high, and followed by the USD1,800 round figure.

Source: RHB Securities Research - 23 Jun 2020