Gold Futures: Door open to further decline

Open interest in gold futures markets extended the uptrend for yet another session on Thursday, this time by around 3.8K contracts according to preliminary readings from CME Group. Volume followed suit and went up by the second session in a row, now by around 25.3K contracts.

Gold now targets the YTD low at $1,680

Gold prices dropped for the fifth consecutive day on Thursday, breaking and closing below the key $1,700 support for the first time since July. The daily retracement was on the back of rising open interest and volume and suggest extra losses in the very near term, with the immediate target at the 2022 low at $1,680 (July 21).