Maintain long positions even as bulls take a longer-than-expected pause. The COMEX Gold ended the latest session marginally weaker by USD0.60 at USD1,487.50. Trading happened in the range of USD1,484 and USD1,492.10. The precious metal’s price actions over the past three weeks are indicating that a consolidation is taking place around the USD1,500 level. This came after the COMEX Gold rebounded from the support of USD1,465. While the said consolidation phase has been longer than expected, we believe once it is completed, the commodity would likely extend its multi-quarter upward move. Maintain our positive trading bias.

As the possibility for the commodity to trend higher remains encouraging, 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. Conversely, 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 - 23 Oct 2019