Gold Futures: Potential for extra gains

Open interest in gold futures markets extended the downtrend for yet another session on Tuesday, this time by nearly 9K contracts according to preliminary data from CME Group. In the same line, volume retreated for the second session in a row, now by more than 31K contracts.

Gold now looks to $1,850

Tuesday’s negative performance in gold prices was on the back of shrinking open interest and volume, leaving further decline not favoured in the very near-term. On the upside, the next hurdle emerges at the $1,850 mark per ounce.