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According to preliminary prints from CME Group for Gold futures markets, traders added around 12.7K contracts to their open interest positions on Thursday, reversing the previous drop. In the same direction, volume went up by nearly 50K contracts, also offsetting part of the previous sharp drop.

Gold still looks to $1,700

The upside momentum in the yellow metal remains well and sound, always on the back of solid demand for safe havens in response to the COVID-19 outbreak. Rising open interest and volume coupled with positive price action in gold hint at the likeliness of further upside in the short-term horizon and a potential test of the $1,700 barrier per ounce troy.