No end to the multi-week correction yet; maintain short positions. The precious metal ended the latest session on a soft tone. It eased USD8.80 to close at USD1,506.40, trading range was between USD1,493.30 and USD1,514.40. The commodity has been undergoing a consolidation phase over the past 2.5 weeks, this came after it experienced a relatively sharp decline from the high of USD1,566.20, recorded on 4 Sep. Once this consolidation phase is over, we are expecting the immediate support of USD1,483 to be tested. Hence, we keep to our negative trading bias.

With the multi-week retracement phase is likely to extend, 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. 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 - 30 Sept 2019