Gold Futures: Extra rangebound likely

Pablo Piovano FXStreet

Considering preliminary readings from CME Group for Gold futures markets, open interest reversed three daily pullbacks in a row and went up by nearly 1.5K contracts on Thursday. Volume, instead, shrunk for the second consecutive session, now by around 102.8K contracts.

Gold faces some consolidation near $1,900

Prices of gold charted an inconclusive session on Thursday following the correction lower from peaks above the $1,900 mark (Wednesday). The move was amidst rising open interest, which leaves the door open for the continuation of the consolidative/bearish theme in the very near-term at least. In addition, the yellow metal remains in the overbought territory (as per the daily RSI), which reinforces the likeliness of a deeper retracement. On the upside, the precious metal still targets the psychological $2,000 mark 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.

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