Gold Futures: Scope for further recovery near term

Open interest in gold futures markets rose by around 9.4K contracts on Monday, extending further its choppy performance according to preliminary readings from CME Group. Volume, instead, reversed two daily builds in a row and shrank by nearly 60K contracts.

Gold remain supported by the 200-day SMA

Monday’s auspicious start of the new trading week saw gold prices print a decent rebound amidst rising open interest, which should open the door to the continuation of this move in the very near term. In the meantime, the 200-day SMA continues to hold the downside for the time being.