Gold Futures: Potential rebound in the pipeline
|Open interest in Gold futures markets increased by around 5.3K contracts at the end of last week, reaching the second build in a row according to preliminary readings from CME Group. In the same line, volume advanced for the third consecutive session, this time by around 22.8K contracts.
Gold: Door open to a short-term recovery
Gold prices dropped to fresh YTD lows in the sub-$1,700 area, although managed to close the session with mild gains. The move was accompanied with rising open interest and volume and leave the door open to the continuation of the rebound in the very near-term. This idea is supported by the potential formation of a morning star condlestick (bullish reversal) pattern in the daily chart. That said, the next level of note on the upside emerges at the $1,760 zone (February 19 low)
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