Gold Futures: Further correction in the pipeline
|Open interest in gold futures markets increased for the second consecutive session on Monday, this time by around 7.5K contracts according to preliminary readings from CME Group. Volume, instead, shrank for the third session in a row, now by around 38.6K contracts.
Gold: Upside looks limited around $2000
Gold prices came under downside pressure soon after hitting fresh multi-month highs just above the $2000 mark per troy ounce. Monday’s decline was accompanied by rising open interest, which suggests that further retracement appears on the cards in the very near term. Against that backdrop, there is an initial support at the weekly low of $1953 (October 24) prior to the key 200-day SMA at $1933.
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