Gold Futures: Scope for further decline

Open interest in gold futures markets rose by nearly 10K contracts after two consecutive daily drops on Wednesday, according to preliminary readings from CME Group. Volume followed suit and went up by more than 94K contracts following three straight daily drops.

Gold faces the next contention around $1900

Prices of gold rose to multi-session peaks around the $1945, just to come all the way down and close Wednesday’s session with modest losses. The marginal pullback was on the back of increasing open interest and volume, which leaves room for further losses in the very near term. That said, next on the downside emerges the key contention area around the $1900 region per troy ounce.