Open interest in gold futures markets rose by nearly 2.5K contracts after three consecutive daily pullbacks according to preliminary readings from CME Group. Volume, instead, remained choppy and shrank by around 126.5K contracts.
Gold keeps targeting the $2000 mark
Wednesday’s rebound in prices of gold from the $1970 region was insufficient to lift the metal back to the positive territory. The move, however, was on the back of increasing open interest, which could be supportive of the continuation of the bounce in the very near term. That said, the next hurdle of note remains at the $2000 mark per troy ounce.
From a technical perspective, the overnight bounce from the $1,970 horizontal resistance breakout and the subsequent move beyond the $1,984-$1,985 region will validate the positive outlook. Given that oscillators on the daily chart are holding in the bullish territory, the Gold price seems poised to aim back to reclaim the $2,000 psychological mark. The upward trajectory could get extended further towards testing the next relevant hurdle near the $2,010-$2,012 supply zone.
On the flip side, the $1,970 area now seems to have emerged as immediate support ahead of the 100-day Simple Moving Average (SMA), currently around the $1,959 region. This is followed by the weekly swing low, around the $1,946-$1,945 zone, below which the Gold price could accelerate the fall towards the $1,934 horizontal support. Any subsequent fall, however, is more likely to get bought into and remain limited near the $1,926-$1,925 region.
