Gold Price Targets $4,200 Spike as Traders Roll Positions

The gold price has been trading near $4,028 after testing below $4,000 in July. According to Jeffrey Christian of CPM Group, a break above the current downward trendline could lead to a short-lived move toward $4,200.

However, if gold breaks below $4,000, it could lead to another sharp move lower. Christian notes that open interest fell from 19.3 million ounces to 13.9 million ounces as traders rolled positions into October and December, which could support gold for several more days.

The August COMEX gold futures contract has seen a decrease in open interest, but registered and eligible stocks total roughly 27 million ounces, indicating that COMEX is not running out of gold.