Maintain long positions as the upward move may be resuming. The Comex Gold formed a white candle to end the latest session on a bright note. At the closing, it added USD9 to end at USD1,504.70 – slightly above the USD1,500 mark. The low and high were recorded at USD1,490.40 and USD1,506.90. The precious metal has been swinging around the USD1,500 level over the last three weeks or so, and further positive follow-up in the coming sessions is likely to signal that the multi-quarter upward move is resuming. Supporting this bias is the fact that the 200-day SMA line is still trending up. We maintain our positive bias.

As we are seeing a good possibility that the commodity is in the process of extending its multi-quarter upward move, 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.

Immediate support is pegged 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 - 29 Oct 2019