Crypto News

Gold Futures Stagnant as Open Interest Shrinks, Volume Drops

Published by
Nonhlanhla P Dube
  • Open interest in gold futures markets decreased by almost 4,000 contracts, indicating that traders are taking a cautious approach to gold futures trading, leading to further consolidation in the market.
  • Volume in gold futures dropped by around 18,300 contracts after two consecutive days of builds. This decrease in volume and open interest indicates that traders are currently taking a “range-bound stance” on gold futures, meaning they are not expecting significant price movements in the near future.
  • The price of an ounce of gold in South Africa retreated marginally on Thursday amidst broader inconclusive trading. However, the shrinking open interest and volume point to the continuation of side-lined trade for the time being. Traders will need to keep a close eye on factors such as changes in global economic conditions, inflation rates, and geopolitical tensions to make informed trading decisions in the gold futures market

Preliminary data from the CME Group shows that open interest in gold futures markets decreased by almost 4,000 contracts on Thursday. The drop in open interest suggests that traders are taking a cautious approach to gold futures trading, leading to further consolidation in the market.

Volume in gold futures also dropped by around 18,300 contracts after two consecutive days of builds. This decrease in volume and open interest indicates that traders are currently taking a “range bound stance” on gold futures, meaning they are not expecting significant price movements in the near future.

The price of an ounce of gold in South Africa retreated marginally on Thursday amidst broader inconclusive trading. However, the shrinking open interest and volume point to the continuation of side-lined trade for the time being.

Despite the current consolidation in the gold futures market, there are a number of factors that could impact the price of gold in South Africa. These include changes in global economic conditions, inflation rates, and geopolitical tensions. As such, traders will need to keep a close eye on these factors in order to make informed trading decisions in the gold futures market.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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