Maintain long positions as the bulls are still in control. The COMEX Gold registered a gain of USD10.50 to close at USD1,494.00 – still below the USD1,500.00 mark, which the commodity has been hovering around over recent weeks. The low and high were posted at USD1,480.60 and USD1,495.50. In the broader picture, we believe the commodity is on the trajectory of resuming its multi-quarter upward move. This comes after it went through a correction phase between early September and early October. The correction completed at USD1,465.00 – it is now an immediate support. We maintain our positive trading bias.

On the inclination that the commodity is still likely to extend its upward move – despite the lengthy minor correction in the past two weeks – 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 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. 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 - 17 Oct 2019