Gold Futures: Correction lower on the cards

Open interest in gold futures markets shrunk for the second session in a row on Friday, this time by around 2.5K contracts according to preliminary figures from CME Group. in the same line, volume dropped by around 37.5K contracts after two builds in a row.

Gold could test $1,675/oz

Prices of the ounce troy of the precious metal rose amidst declining open interest and volume on Friday, showing that short covering was behind the move up. That said, a move lower in gold remains on the table with the potential target at monthly lows around $1,675 per ounce.