Gold futures: Extra gains appear likely

Pablo Piovano FXStreet

Traders added nearly 18K contracts to their open interest positions on Thursday, reversing two consecutive pullbacks, according to preliminary readings from CME Group. In the same line, volume extended the choppy performance and advanced by around 71.5K contracts.

Gold: A move to $1,600/oz is not ruled out

Fresh fears around the Chinese COVID-19 motivated investors to seek shelter in Gold on Thursday. The daily advance in combination with rising open interest and volume now indicates that further upside should remain on the table along with a potential move to the $1,600 per ounce troy.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold recedes slightly, trades below $5,100

Gold remains stuck in choppy trade on Thursday, deflating marginally just below the $5,100 mark per troy ounce as the US Dollar drifts without a clear trend. Softer US Treasury yields across the curve are offering some support, but with markets treading carefully ahead of Friday’s US CPI release, conviction remains limited and price action continues to look hesitant.