Maintain long positions. The COMEX Gold showed a positive follow-up from the prior session’s rebound off the 50-day SMA line, adding USD11.70 to close at USD1,954.90 - the highest closing in the past five sessions. With the encouraging price reactions from the said SMA line, we believe the commodity is likely to extend its rebound, which began from the low of USD1,865 on 12 Aug. We are expecting, at the very minimum, for this rebound to reach USD2,000. We maintain our positive trading bias.

We advise traders stay in long positions. We initiated these at 26 Aug’s closing level of USD1,944.10. For riskmanagement purposes, a stop-loss can be placed below the USD1,925 mark.

The immediate support is revised to USD1,925 – the price point of 8 Sep. This is followed by USD1,909.60, or the low of 21 Aug. Meanwhile, the resistance point is expected at USD1,980, followed by the USD2,000 round figure.

Source: RHB Securities Research - 10 Sept 2020