Gold Futures: Further upside in store

Open interest in gold futures markets set aside the previous drop and went up by around 10.5K contracts on Friday according to preliminary readings from CME Group. In the same direction, volume increased by around 24.4K contracts after two consecutive daily drops.

Gold: Further gains likely above $1880

Friday’s sharp uptick in prices of the ounce troy of gold was amidst increasing open interest and volume. That said, the continuation of the recovery appears the most likely scenario in the very near term, while gains are seen picking up pace on a convincing breakout of the $1880 region.