Gold Futures: Scope for further downside

CME Group’s flash data for gold futures markets noted open interest rose by just 856 contracts on Thursday, reaching the second consecutive daily build. Volume followed suit and went up markedly, now by nearly 109K contracts.

Gold faces the next support near $1,640

Thursday’s volatile price action ended up with modest losses in gold. The daily downtick, in the meantime, was amidst increasing open interest and volume, hinting at the likelihood that extra decline remains on the cards in the very near term. That said, the next support of note emerges at the October low near $1,640 (October 13).