Maintain long positions until the stop-loss is taken out. The Comex Gold extended its sliding mode for the second consecutive session. This came after it tested the downtrend line (as drawn on the chart) on 25 Oct. Session’s low and high were recorded at USD1,485.60 and USD1,497.10, before closing USD5.10 weaker at USD1,490.70. While the negative closing placed the precious metal further below both the said downtrend line and the USD1,500 mark, we see this as just an extended leg of the commodity’s consolidation phase since the beginning of this month. For now, the expectation for the multi-quarter upward move is still considered intact – provided the immediate support of USD1,465 is not breached. Maintain positive trading bias.

On the expectation that the upward move is still in place, 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 - 30 Oct 2019