Bulls are pushing ahead despite overbought RSI reading; maintain long positions. The COMEX Gold’s multi-year uptrend continued to extend, as it closed at a record USD2,037.10. It posted a high of USD2,057.50. The precious metal resumed its upward move during the previous session, after experiencing a relatively brief pause last week. While the RSI reading is now flashing out an unhealthy overbought reading, in the absence of a price reversal signal, 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 USD1,970.

The immediate support is revised to USD2,015 – near the latest low. This is followed by the USD2,000 round figure. Moving up, the immediate resistance is eyed at USD2,050, followed by USD2,075.

Source: RHB Securities Research - 6 Aug 2020