Maintain long positions. The COMEX Gold ended the latest session USD34.20 weaker at USD1,944.70. This came following the prior sessions’ sharp retracement after the commodity failed to cross above the USD2,000 resistance point. Despite the negative price follow-through, from a price pattern point of view, we still expect the precious metal to extend its rebound phase, which has been in development following the sharp retracement between 7 Aug and 12 Aug. Hence, we are keeping to our positive trading bias.

Until further price actions take place, we advise traders stay in long positions. We initiated these at 26 Aug’s closing level of USD1,944.10. For risk-management purposes, a stop-loss can be placed below the USD1,925 mark.

The immediate support is revised to USD1,909.60, or the low of 21 Aug. This is followed by the USD1,900 round figure. Towards the upside, the resistance point us pegged at USD1,980, and followed by the USD2,000 round figure.

Source: RHB Securities Research - 3 Sept 2020