Maintain long positions as bulls are still defending the immediate support. The COMEX Gold closed the latest session better by USD1.90 at USD1,193.40. The session’s low and high were recorded at USD1,188.50 and USD1,198.60. The bulls’ performance over the last two sessions around the immediate support of USD1,184, were not strong enough to suggest that a firm rebound is setting in. Nevertheless, for now, provided the said immediate support is not broken, the corrective rebound that started from the low of USD1,162 on 16 Aug should remain valid. Hence, we are keeping our near-term positive trading bias.

With no price actions to suggest that the rebound has reached an end, we continue to advise traders to keep their long positions. Recall that we initiated these positions after the precious metal breached above the USD1,207.60 mark on 12 Sep. For risk management purposes, a stop-loss can be set below the USD1,184 threshold.

We are looking at USD1,184, which was the low of 24 Aug as the immediate support. Breaking this may see the market retest the USD1,162 critical support registered on 16 Aug – this was also the YTD low. Conversely, the immediate resistance is set at the USD1,215 mark, or 20 Jul’s low. This is followed by the USD1,239 level, which was 26 Jul’s high.

Source: RHB Securities Research - 11 Oct 2018