Maintain long positions as we are eyeing further upside. The COMEX Gold continued to attempt to advance above the USD1,500.00 level in the latest session, as it reached a high of USD1,501.10. This is was before it settled USD4.30 higher at USD1,498.30. The precious metal has been swinging around the USD1,500.00 level over the past two weeks or so. Based on its price trajectory, we are of the view that further positive price actions are required to take place in the coming sessions to reinforce our current positive trading bias. Failure for that to happen would invalidate this bias.

As we see that the bulls are still able to extend the commodity’s 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 riskmanagement purposes, a stop loss can be placed below the USD1,465.00 threshold.

We are keeping the immediate support target 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 - 18 Oct 2019