Maintain long positions until the immediate support is broken. The Comex Gold ended the latest session in negative territory, giving up USD27 to close at US1,473.30. Trading happened between USD1,468.40 and USD1,500.70. The negative session placed the commodity below the USD1,500 mark, a level that it has been hovering around over the past one month or so. While the price pattern is increasingly unfavourable for the bulls, we are still keeping our positive trading bias until the immediate support of USD1,465 is breached.

Until the case for the extension of the multi-quarter upward move is invalided by the downside breach of the said immediate support, 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 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 - 8 Nov 2019