Maintain long positions as the multi-year uptrend remains firm. Today, we are taking a look at COMEX Gold’s long-term price trend – using a weekly chart. The commodity has been undergoing a multi-year uptrend since end- 2015. The recent upward move was resumed after the commodity experienced a healthy multi-week sideways correction phase, and recently crossed above the important USD1,789.50 – USD1,806.60 resistance zone, which is a positive technical signal. This was on the back of the daily and weekly RSI readings, which are still below overbought readings. At this juncture, as long as the commodity manages to hold above the said previous resistance zone, the risk of a deeper correction setting in would still be contained. We maintain our positive trading bias.

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 revised to USD1,815 – near the latest low. This is followed by the USD1,800 round figure. Towards the upside, immediate resistance is eyed at USD1,850, followed by USD1,865 – near the high of 12 Sep 2011.

Source: RHB Securities Research - 9 Jul 2020