Gold Futures: Scope for further rebound

Open interest in gold futures markets extended the uptrend and rose by around 11.4K contracts at the beginning of the week, considering preliminary figures from CME Group. In the same line, volume went up by around 14.4K contracts, partially revering the previous drop.

Gold still capped by $1,825

Monday’s drop and bounce off multi-day lows was amidst increasing open interest and volume, with gold closing the day with marginal losses and just above the key $1,800 mark per ounce troy. That said, further upside is forecast to meet a solid hurdle at the 200-day SMA around $1,825.