Maintain long positions, as we are still looking for an upward move extension. The COMEX Gold continued to trade within the striking range from the USD1,500 level in the latest session. It hit a high of USD1,499.40 before closing USD8.20 higher at USD1,495.70. The latest session can be seen as part of the commodity’s ongoing consolidation around the USD1,500 level, which has been in development over the past three weeks. On the broader picture, chances are high that the precious metal is in the process of extending its multi-quarter upward move after it tested the USD1,465 immediate support on 1 Oct. We maintain our positive trading bias.

On the bias that the bulls are still able to drive prices higher, we continue to recommend 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 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. Meanwhile, 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 - 24 Oct 2019