Maintain long positions. The COMEX Gold ended the latest session USD15.80 stronger at USD1,963.70, with a a wide trading range of between USD1,945.20 and USD1,972.50. Based on the precious metal’s price actions in the past five sessions, after the 50-day SMA line was tested, we see strong possibility for a rebound extension following the sharp retracement seen between 7-12 Aug. Towards the upside, at the minimum, we are expecting the USD2,000 round figure to be tested. 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 now pegged at USD1,944 – the low of 11 Sep, followed by USD1,925. Conversely, the resistance point is expected at USD1,980, followed by the USD2,000 round figure.

Source: RHB Securities Research - 15 Sept 2020