Gold Futures: Further gains on the cards

Open interest in gold futures markets resumed the uptrend and went up by more than 6K contracts on Friday according to preliminary readings from CME Group. Volume followed suit and increased by nearly 170K contracts, the largest single-day build since mid-March.

Gold: Next target comes at $1953

Friday’s pronounced gains in gold prices surpassed the key $1900 mark as well as the critical 200-day SMA ($1929). The sharp move was on the back of rising open interest and volume and leaves the door open to extra gains in the very near term. That said, the next hurdle of note emerges at the September high at $1953 per troy ounce (September 1).