Open interest in gold futures markets dropped by approximately 1.4K contracts on Thursday, marking the first decrease since October 16, as reported by CME Group’s preliminary data.
On the Multi Commodity Exchange, gold contracts for December delivery saw an increase of $2.04, equivalent to 0.25 percent, reaching $810.33 for 10 grams, with a trading volume of 14,757 lots. Analysts attributed this rise in gold prices to new positions being established by market participants. In the global market, gold futures also experienced a gain of 0.27 percent, reaching $2,000.30 per ounce in New York.
Volume Follows Suit
Volume, too, mirrored the decline, shrinking by around 24.7K contracts. This trend is maintaining the overall erratic performance of the market. Market analysts are closely monitoring the situation, with some suggesting that the decline in open interest and volume could be a sign of profit-taking among investors. The potential correction may offer new entry points for those interested in the Gold Futures market. It is a critical juncture for gold, and the coming weeks will likely provide more clarity on whether the precious metal can breach the $2000 mark.
Gold Futures Monthly Surge
Gold prices continued their monthly recovery on Thursday. However, this upward movement was accompanied by diminishing open interest and volume, hinting at the possibility of an impending correction in the short term.
Read More: GBP And USD Holds Steady Above 1.2100, Eyes US PCE for Momentum
Aiming for $2000
In the grander scheme of things, the precious metal still maintains its sights on the crucial barrier at $2000 per troy ounce.
In summary, open interest in gold futures has experienced its first decline in several weeks, potentially signaling an impending correction. While gold prices have been on an upward trajectory, the dwindling open interest and volume suggest a corrective move might be on the horizon. In the long term, the target for gold remains set at $2000 per troy ounce.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, Gold Futures it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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