Positive bias stays intact; maintain long positions. The COMEX Gold ceased the last session USD4.20 weaker at USD1,494.10 – as it still hovering around the USD1,500.00 mark. Intraday, the commodity reached a low and high of USD1,488.30 and USD1,497.90. At this juncture, we are still of the view that the commodity has completed its multi-week correction phase, which took place between early September and early October. This means we expect the precious metal to extend its upward move. This bias could be further enhanced if the RSI resistance line (as drawn on the chart) is crossed. We maintain our positive trading bias.

On the bias that the commodity will still be able to scale higher, 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.

Towards the downside, immediate support is expected to emerge 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 - 21 Oct 2019