Maintain short positions as the immediate support is still likely to be tested. The COMEX Gold added USD1.90 to settle at USD1,513.40. This was after it reached a low and high of USD1,500.90 and USD1,515. The precious metal’s price actions over the recent sessions are indicating a minor sideways consolidation phase is taking place around the USD1,500 level. This came after it experienced a relatively sharp decline between 4 and 10 Sep. As such, we continue to see the downside risk as still high, with the minimum bias of testing the immediate support of USD1,483. Maintain our negative trading bias. As the correction phase is still not showing signs of reaching an end, we recommend traders stay in short positions. These were initiated at USD1,511.10, which was the closing level of 9 Sep. For risk-management purposes, a stop loss can be placed above USD1,566.20. Immediate support is set at USD1,483, or the low of 13 Aug. This is followed by the USD1,406 mark, which was near the low of 1 Aug. Meanwhile, the immediate resistance is set at USD1,566.20, which was the high of 4 Sep. This is followed by the USD1,600 threshold.

Source: RHB Securities Research - 18 Sept 2019