Gold Futures: Scope for further advance

CME Group’s flash data for gold futures markets noted traders added just 781 contracts to their open interest positions on Monday, reversing the previous marginal drop. Volume, instead, shrank for the second session in a row, this time by nearly 4K contracts.

Gold: Next on the upside comes $1,765

Gold prices extended the recovery at the beginning of the week, briefly testing the $1,735 level just to ease part of that advance later in the session. The daily uptick was amidst a small increase in open interest, which could allow for the continuation of the bounce in the very near term. The decline in volume could, however, slow the pace of the recovery. The yellow metal should face the next hurdle at the weekly high at $1,765 per ounce troy (August 25).