Gold Futures: Further downside loses traction

Open interest in gold futures markets shrunk for the second consecutive session on Friday, this time by around 8.8K contracts according to preliminary figures from CME Group. Volume, instead, went up for the third session in a row, now by around 60K contracts.

Gold faces the next support around $1,670/oz

Friday’s sharp pullback in gold prices to fresh 2021 lows in the $1,720 mark per ounce was on the back of shrinking open interest, removing some strength of extra downside in the very near-term. Rising volume, however, does not close the door to the continuation of the downtrend, with the next target at the June 2020 lows around $1,670.