Maintain long positions, as the case for upward move resumption stays. The COMEX Gold attempted to regain the USD1,500 round figure in the latest session – the intraday high was posted at USD1,501.50, before ending at USD1,497.60, indicating a USD8.90 advancement. In the broader picture, the bias is still strong for the commodity to extend its upward move. This came after it completed a multi-week correction phase between early September and early October. Towards the upside, a firm breach of the downtrend line (as drawn on the chart) should further enhance this positive expectation. We maintain our positive trading bias.

With the expectation that the upward movement is still on the path to extend further, we continue to recommend that traders stay in long positions – these were initiated at USD1,513.80, or the closing level of 3 Oct. For riskmanagement purposes, a stop loss can be placed below the USD1,465.00 threshold.

Immediate support is set 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. On the other hand, 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 - 15 Oct 2019