Still looks like a minor consolidation; maintain long positions. The precious metal gave back all its intraday gains to close USD11.90 weaker at USD1,500.90, still above the USD1,500.00 level – which the bulls have been defending over the recent sessions. The low and high were posted at USD1,495.70 and USD1,522.30. The weak showing does not signal a price reversal – rather, it can be seen as part of the minor consolidation phase which has been developing over the past week or so. Once this consolidation is over, we expect the downtrend line (as drawn on the chart) to be tested. Maintain our positive trading bias.

As the recent sessions’ price actions are considered a minor consolidation, 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 pegged 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. 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 - 11 Oct 2019