Gold Futures: Further recovery appears unlikely

Open interest in gold futures markets extended the downtrend on Friday, this time by more than 1K contracts according to preliminary readings from CME Group. Volume, instead, increased for the second session in a row, now by 3.5K contracts.

Gold looks well supported near $1950

Friday’s decent gains in prices of gold was amidst the continuation of the downtrend in open interest, which is indicative that a sustained rebound seems out of favour for the time being. In the meantime, the $1950 region per ounce troy emerges as a solid support for the yellow metal.