Maintain long positions. The COMEX Gold recouped some losses from the previous session, gaining USD12.70 to close at USD1907.30. The precious metal started the session at USD1,895.40, dipped to a session low at USD1,885.00, and traded higher to a session high at USD1,917.50. The precious metal managed to close slightly higher above the 20-day SMA line. Although the 20-day SMA line is still trending below the 50-day SMA line, we are keeping view that the higher lows – which started from USD1,851 – will provide support for the precious metal. Maintain our positive trading bias.

We recommend traders to stay in long positions. We initiated these positions at USD1,903.20, ie the closing level of 29 Sep. For risk-management purposes, the stop-loss is set at the USD1,880 mark.

The immediate support level is marked at USD1,880, or the low of 29 Sep. This is followed by USD1,851, which was 28 Sep’s low. Meanwhile, the immediate resistance is maintained at USD1,927, followed by USD1,968.20, ie the high of 18 Sep.

Source: RHB Securities Research - 15 Oct 2020