Gold Futures: Further downside unlikely

According to preliminary figures from CME Group for gold futures markets, open interest shrank by just 532 contracts on Friday, partially reversing the previous uptick. Volume followed suit and went down by around 26.2K contracts.

Gold stays side-lined near $1,800/oz

Friday’s pullback in gold prices was in tandem with shrinking open interest and volume, hinting at the idea that extra decline is not favoured in the very near term at least. That said, yellow metal remains poised to extend the rangebound theme around the $1,800 mark per ounce troy in the very near term.