Still expecting the upward move to extend; maintain long positions. The COMEX Gold ended the latest session on a weak note. It slid from positive territory (high: USD1,503.00) to settle the session at USD1,483.50, indicating a decline of USD14.10. The commodity’s past two weeks’ minor correction phase has been deeper and longer than expected. However, provided the immediate support level of USD1,465.00 is not breached, we will keep to our positive trading bias. Towards the upside, a firm breach of the downtrend line (as drawn on the chart) would be the next positive price signal.

As we still see a good possibility that the commodity is still able to extend its upward move, 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 risk-management purposes, a stop loss can be placed below the USD1,465.00 threshold.

Immediate support is still expected 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 - 16 Oct 2019