Gold Futures: Scope for extra losses near term

Open interest in gold futures markets prolonged the downtrend for yet another session on Tuesday, this time by around 12.6K contracts according to preliminary readings from CME Group. Volume, in the same line, resumed the downside and dropped by 19.3K contracts.

Gold faces an interim support at $1,711

The earlier move to the $1,750 region lacked followed through and gold prices ended Wednesday’s session marginally up. The move, however, was amidst shrinking open interest and volume and is indicative that further recovery is not favoured for the time being. That said, the next support emerges at the 100-day SMA, today at $1,711 per ounce troy.