Maintain long positions. The COMEX Gold continued to be capped by the USD1,500 mark in the latest session. The precious metal hit an intraday high of USD1,498.70, before sliding down to cease at USD1,488.10, indicating a decline of USD6. Despite the negative session, we continue to believe the possibility is high that the commodity is on the path of extending its upward move. Its price actions since early October can be seen a consolidation phase around the USD1,500 mark. A firm breakaway from this level and the downtrend line (as drawn on the chart) would further enhance this positive bias.

On the expectation that the commodity is still 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.

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 - 22 Oct 2019