Maintain short positions on expectation the correction phase is still incomplete. The COMEX Gold continued to extend its rebound in the latest session – this came after it tested the USD1,500 level multiple times recently. Session’s low and high were posted at USD1,517.90 and USD1,534.40. While the commodity is now back comfortably above the USD1,500 level, there is still insufficient technical evidence to suggest its multi-week correction has reached an end. Towards the downside, we are still expecting the immediate support of USD1,483 to be tested. Maintain our negative trading bias. On the bias that the correction phase has not reached its end yet, 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. We are keeping the immediate support target 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. Conversely, 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 - 24 Sept 2019