Maintain long positions. The COMEX Gold ended the session on a mild bullish sentiment, rising USD3.70 to close near to the session high at USD1,915.40. The precious metal started the session USD5.30 lower at USD1,906.40 and dipped to a low of USD1,896.60 – this was before momentum picked up, which saw the COMEX Gold rebounding USD21.00 towards the USD1,917.60 high. With the RSI trend along the 50% level, the precious metal has been moving in a very tight range over the last five sessions. We believe the sideways movement will prevail in the coming sessions until it breaks out at either the resistance or support levels. During this sideways period, we maintain our positive trading bias.

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

The immediate support level is marked at USD1,880 and followed by USD1,851, which was 28 Sep’s low. On the upside, the immediate resistance is eyed at USD1,927 and followed by USD1,968.20, ie the high of 18 Sep.

Source: RHB Securities Research - 21 Oct 2020