Resumption of the upward move is still likely; maintain long positions. The COMEX Gold gave back USD8.50 to settle at USD1,504.40 – still above the USD1,500 mark. The session’s low and high were recorded at USD1,493.30 and USD1,518.80. The precious metal has been showing signs of developing a minor consolidation in recent sessions – this came after it rebounded rather encouragingly from the USD1,465 level between 1 Oct and 3 Oct. Overall, we continue to see the bias as strong, indicating that the commodity is on the path towards resuming its upward move. This could be enhanced, should both the downtrend and RSI resistance lines – as drawn on the chart – are crossed. We maintain our positive trading bias.

In the absence of price reversal signals that could nullify the COMEX Gold’s positive bias, we continue to recommend traders stay in long positions – these were initiated at USD1,513.80, or the closing level of 3 Oct. For risk-management purposes, a stop loss can be placed below the USD1,465 threshold.

The immediate support is maintained at USD1,465, which was the low of 1 Oct. This is followed by the USD1,406 mark, ie near the low of 1 Aug. Towards the upside, the immediate resistance is set at USD1,543.30, or the high of 24 Sep. This is followed by USD1,566.20, which was the high of 4 Sep.

Source: RHB Securities Research - 8 Oct 2019