Traders bullish on gold ahead of Akshaya Tritiya

Traders are building bullish bets on gold in the futures market on the eve of Akshaya Tritiya, which heralds the gold-buying season, according to data on the Multi Commodity Exchange of India.

Open interest has risen from 7,449 contracts, when the price was Rs 26,737 per 10 gm last Tuesday, to 8,013 contracts on Monday, when gold quoted at Rs 26,879 intraday, up Rs 67 from Friday’s closing.

The rise in open interest, along with the price increase, indicates a build-up of bullish positions. Open interest is the total number of outstanding contracts that are held by market participants at the end of each day.