Gold Futures: Further gains not ruled out

Traders increased their open interest positions by around 5.6K contracts after six consecutive daily pullbacks on Wednesday considering preliminary readings from CME Group. On the other hand, volume resumed the downtrend and shrunk by nearly 127K contracts.

Gold now looks to $1,960

Rising open interest coupled with Wednesday’s positive price action in gold points to further gains in the very near-term. Of note, however, is that the precious metal navigates the overbought territory (as per the daily RSI), leaving the door open for a corrective move sooner rather than later. On the upside, the next target now emerges at the 2021 peaks around $1,960 per ounce troy.