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| Gold Prices Show Marginal Increase Amid Rising Open Interest and Drop in Volume |
Gold prices showed a slight increase on Thursday, with open interest in gold futures markets rising by almost 3,000 contracts after three consecutive daily pullbacks. However, the volume remained choppy and decreased by almost 191,000 contracts. Despite the inconclusive session, the rising open interest and a drop in volume suggest that there could be further indecision in the gold market. However, the underlying upside bias is still intact, which could mean that further gains are not ruled out. The immediate resistance for gold is at the 2023 high of $1959 per ounce troy, which was recorded on February 2.
Investors are closely monitoring the gold market amid ongoing global economic uncertainties. The precious metal is considered a safe haven asset and is often sought after during times of market volatility. As the world continues to grapple with the impacts of the pandemic, investors are turning to gold as a means of diversification and risk mitigation. The market outlook for gold remains uncertain, but experts predict that it could continue to show strength as investors seek safe haven assets in the face of ongoing economic challenges.
