Maintain long positions. The COMEX Gold confirmed our recent bias that it had completed a 2-week sideways consolidation, with a low of USD1,804.50 recorded on 14 Jul, and is now resuming its multi-year uptrend. The latest session saw the precious metal gaining USD22.90 to close at USD1,876.70. While the RSI is flashing out an overbought reading as the commodity advances towards the previous cycle’s 6 Sep 2011 high of USD1,923.70, there are no signals of a price reversal. 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 below USD1,804.50.

We revise the immediate support to USD1,850 – the price point of 21 Jul. This was followed by USD1,804.50, which was the low of 14 Jul. Moving up, the immediate resistance is now eyed at the USD1,900 round figure. Breaking this threshold, we may see the commodity testing the USD1,923.70 point – the high of 6 Sep 2011.

Source: RHB Securities Research - 23 Jul 2020