In the gold futures markets, open interest saw a notable increase for the second consecutive session on Monday, rising by approximately 7.5K contracts, as reported by preliminary data from CME Group. However, trading volume moved in the opposite direction, declining for the third consecutive session, with a decrease of around 38.6K contracts.
Gold’s Price Movement and Potential Limits
Gold prices experienced a downward shift after reaching fresh multi-month highs, briefly exceeding the $2,000 per troy ounce threshold. This decline on Monday coincided with a rise in open interest, implying the likelihood of further retracement in the very near term. Given this situation, initial support is expected at the weekly low of $1,953, which was recorded on October 24.
Subsequently, the key level to watch is the 200-day Simple Moving Average (SMA) at $1,933, which may serve as a crucial marker for gold’s future price movements.
