Stick to short positions. The COMEX Gold continued to stretch its rebound into the latest session. Session’s low and high were posted at USD1,522.80 and USD1,543.30, before closing USD8.70 higher at USD1,540.20. The positive price performance over the recent sessions started after it tested the USD1,500 level multiple times. Price actions over the coming sessions are important, if further positive follow-up is observed, this may signal its correction phase has completed. Until this happens, we keep to our negative trading bias. Until bulls are showing signs of regaining control over the price trend, 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 still pegged 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 - 25 Sept 2019