Gold Futures: Scope for extra gains

CME Group’s preliminary readings for Gold futures markets noted open interest reversed three consecutive daily drops and rose by nearly 2.7K contracts at the beginning of the week. Volume, on the other hand, shrunk for the second day in a row, this time by around 33.2K contracts.

Gold now looks to $1,940/oz

Prices of the ounce troy of the yellow metal edged higher on Monday and is looking to consolidate the breakout of the $1,900 level. The uptick in gold was on the back of rising open interest, leaving the door open for a potential move to the 55-day SMA in the $1,940 region per ounce.