Gold Futures: Extra losses likely

Open interest in gold futures markets rose for the second session in a row on Thursday, this time by just 487 contracts in light of preliminary figures from CME Group. On the other hand, volume shrunk by around 32.6K contracts, reversing the previous build.

Gold could slip back to $1,800

Thursday’s moderate pullback in gold prices was on the back of rising open interest, leaving the door open to the continuation of the downtrend in the very near-term. While the drop in volume could temper the decline, another test of the $1,800 mark per ounce troy cannot be ruled out.