Maintain long positions. The Comex Gold halted its two consecutive declines to settle USD13.10 stronger at USD1,503.80 – back above the USD1,500 mark. The trading range was wide, with the low and high recorded at USD1,490.30 and USD1,506.00. While the precious metal remains capped by the downtrend line (as drawn on the chart), we are still seeing a good possibility for it to extend its multi-quarter upward move. The close above the USD1,500 mark provides support to this view. We maintain our positive trading bias.

As we continue to see the multi-quarter upward move is still in place, we maintain our recommendation for traders to 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 expected 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 - 31 Oct 2019