Gold Futures: Further downside not ruled out

CME Group’s flash data for gold futures markets noted open interest rose for the third session in a row on Thursday, this time by nearly 4.1K contracts. In the same line, volume went up by more than 5K contracts, reaching the third build in a row.

Gold could re-test the $1,700/oz area

Prices of the ounce troy of gold retreated on Thursday amidst increasing open interest and volume, opening the door for the continuation of the correction lower in the very near-term. That said, there is interim support in the $1,700 neighbourhood per ounce, coincident with the 55-day SMA.