Maintain long positions, as a minor consolidation is taking place below the downtrend line. The COMEX Gold handed in a gain of USD8.90 to close at USD1,512.80, with trading ranging between USD1,505.10 and USD1,518.00. The precious metal has been showing signs of developing a minor consolidation over the past week, below the downtrend line (as drawn on the chart). Once this consolidation phase is over, the commodity is likely to test the said downtrend line. Overall, we still see a high chance that the COMEX Gold is on the path to extend its upward move.

As the precious metal is still showing upward strength, 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 USD1,465.00 threshold.

The immediate support is set to emerge at USD1,465.00, which was the low of 1 Oct. This is followed by the USD1,406.00 mark, ie near the low of 1 Aug. Moving up, 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 - 10 Oct 2019