Gold Futures: Scope for extra gains

CME Group’s flash data for gold futures markets showed traders added nearly 6K contracts to their open interest positions following two consecutive daily pullbacks on Monday. Volume followed suit and went up by around 42.2K contracts, also reversing two straight daily drops.

Gold now targets $1,735

Gold prices extended the rebound and flirted with the key $1,700 barrier at the beginning of the week. The uptick was on the back of rising open interest and volume and leaves the door open to extra gains in the very near term and with the immediate target now at the September high at $1,735 (September 12).