Correction is still likely to extend; maintain short positions. The COMEX Gold managed to rebound from an intraday loss (the low was at USD1,490.70) to settle the day USD2.40 better at USD1,1515.80. Despite the encouraging positive intraday reversal and the commodity holding above the USD1,500 level, we continue to see the bias is strong that the precious metal is still undergoing a correction phase. This is meant to correct its previous multi-month upward move that took place between early May and early September. Hence, we keep to our negative trading bias.

On the expectation that the immediate support of USD1,483 is to be tested, 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 eyed 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. On the other hand, 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 - 19 Sept 2019