Gold Futures: Further upside appears unlikely

Open interest in gold futures markets recorded the second daily drop in a row on Friday, now by just 330 contracts according to preliminary readings from CME Group. Volume, instead, increased for the third consecutive session, this time by around 68.4K contracts.

Gold looks supported around $1,780

Friday’s drop in gold to the proximity of the 2022 low at $1,780 and subsequent rebound was on the back of a small drop in open interest. That said, a more serious bounce looks not favoured for the time being, while the so far YTD low at $1,780 (January 28) is expected to hold the downside for the time being.