Maintain long positions. The Comex Gold ended the latest session on a soft tone – losing USD9.50 to settle at USD1,495.80. Trading took place in the range of USD1,492.30 and USD1,510.80. The negative performance placed the precious metal back below USD1,500 – a level that it has been trading around over the past four weeks. The negative session came in after it tested the downtrend line (as drawn on the chart). However, to signal a clear price rejection, which, if happens, would invalidate our ongoing positive trading bias, further negative price actions are required over the coming sessions.

As we see the commodity is still 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 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. 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 - 29 Oct 2019