Gold Futures: Further weakness on the cards

Open interest in gold futures markets rose by more than 1K contracts on Friday, resuming the uptrend after the previous daily drop according to preliminary readings from CME Group. On the other hand, volume shrank by nearly 9.5K contracts.

Gold: Next on the downside comes $1800

Friday’s daily retracement in gold prices was amidst increasing open interest, which is supportive of further decline in the very near term and with the immediate target at the key contention area around $1800 per ounce troy.