No change to the negative bias; maintain short positions. The COMEX Gold tested the USD1,500 round figure with an intraday low of USD1,496.30, this was before it closed at USD1,506.20, indicating a decline of USD9.60. The precious metal has been trading in a relatively narrow sideways consolidation pattern around the USD1,500 level over the past two weeks. This came after it experienced a relatively sharp downward move between 5 and 10 Sep. Based on this, the bias is strong for the downward move to resume once the consolidation phase is complete. Maintain our negative trading bias. As the multi-week correction phase is still incomplete, 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 expected 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 - 23 Sept 2019