Maintain long positions. The COMEX Gold ended the latest session higher by USD12.30 to close at USD2,030.30. The positive session came after the prior session’s negative performance, which saw the precious metal form a “Bearish Engulfing” price reversal pattern. This happened after the recent price surge turned stretched, with the RSI flashing out an overbought reading. However, to confirm a deeper price correction phase is taking place, the prior low of USD2,015 has to be breached in the coming sessions. For now, 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 USD2,015.

The immediate support is maintained at USD2,015, which is also 7 Aug’s 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 - 11 Aug 2020