Maintain long positions. The COMEX Gold ended its latest session USD3.90 higher at USD1,804.90 – marginally above the previous USD1,800 immediate resistance. The precious metal’s price actions over these recent sessions suggest a minor pause is taking place around the USD1,788.90 immediate support level, ie no indication of a price reversal or risk of a deeper correction taking place. Premised on this, we retain our positive trading bias.

As the consolidation phase is still relatively arrow in nature, we recommend traders stay in long positions. We initiated these at USD1,766.40, which was the closing level of 22 Jun. For risk-management purposes, a stop-loss can now be placed at the breakeven mark.

The immediate support is maintained at USD1,788.80, or the high of 14 Apr. This is followed by the USD1,753.50 level, which was 22 Jun’s low. Moving up, the immediate resistance is now eyed at USD1,816.80, ie the high of 1 Jul. This is followed by the USD1,850 threshold.

Source: RHB Securities Research - 7 Jul 2020