Gold Futures: Door open for further losses

Open interest in gold futures markets resumed the upside and went up by around 16.7K contracts on Thursday according to advanced prints from CME Group. Volume, instead, shrank by around 68.1K contracts after two consecutive daily drops.

Gold remains supported by $1,700

Prices of gold extended the leg lower and briefly visited the area below $1,700 on Thursday. The move was amidst rising open interest, which exposes the continuation of the downtrend in the very near term at least. The $1,700 area, in the meantime, continues to offer solid contention for the time being.