No sign of a reversal; maintain long positions. The COMEX Gold settled USD0.60 higher during the latest session, at USD1,826.10, after hitting a high of USD1,830.80. Looking at the bigger picture, the precious metal has possibly been trading in a narrow sideways consolidation phase over the past week. This is a healthy observation, following the prior week’s upward move. There is no price signal that suggests this consolidation phase will develop into a deeper correction leg. 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.

We are keeping the immediate support at USD1,815 – near 9 Jul’s low. This is followed by the USD1,800 round figure. Conversely, the immediate resistance is eyed at USD1,850, followed by USD1,865, which is near the high of 12 Sep 2011

Source: RHB Securities Research - 16 Jul 2020