No reversal signal yet; maintain short positions. The COMEX Gold ended the latest session USD6.60 lower at USD1,460.80. This came after the commodity hit a low and high of USD1,459.10 and USD1,469.10. This negative session means the precious metal’s multi-month correction phase, which started from the high of USD1,566.20 on 4 Sep, is still progressing. For now, this negative bias should stay, as long as the COMEX Gold still trades below the downtrend line, as drawn on the chart. Consequently, we are keeping our negative trading bias.

On the observation that the bears are still pushing prices lower, we advise traders to stay in short positions. We initiated these at USD1,464.10, or the closing level of 11 Nov. For risk-management purposes, a stop loss can be placed above the USD1,525.00 threshold.

The immediate support is expected at the USD1,406.00 mark, ie near the low of 1 Aug. This is followed by USD1,390.90, or the low of 1 Jul. Moving up, the immediate resistance is set at USD1,525.00 – the high of 3 Oct. This is followed by USD1,566.20, which was the high of 4 Sep.

Source: RHB Securities Research - 28 Nov 2019