Maintain long positions. After it came in near to test the USD2,000 resistance point with a high of USD1,997, the COMEX Gold slid to significantly trim its gains to a mere USD0.80 to close at USD1,974.70. Despite the sharp intraday price reversal near the said resistance – which also took place on the back of an oversold RSI reading – there is still lack of evidence to suggest the commodity’s upward move has reached an interim top, ie further negative price actions are required in the coming sessions to confirm this possibility. Premised on this, we are keeping 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 USD1,900.00.

The immediate support is set at USD1,945, near 29 Jul’s low. This is followed by USD1,910 – slightly below 28 Jul’s low. Moving up, the immediate resistance is set at the USD2,000 round figure, followed by USD2,050.

Source: RHB Securities Research - 4 Aug 2020