Gold Futures: Further gains favoured near term

Open interest in gold futures markets increased by around 13.3K contracts after three consecutive daily pullbacks according to preliminary figures from CME Group. Volume, instead, shrank by around 25.7K contracts, keeping the choppy activity well in place for the time being.

Gold still focused on $2,000

Tuesday’s strong upside in gold prices was in tandem with rising open interest, which is indicative that extra gains appear favoured in the very near term. The moderate pullback in volume, however, might prompt some correction ahead of the continuation of the uptrend.