Gold Futures: Downside looks contained

Open interest in gold futures markets dropped for the second session in a row on Friday, this time by around 5.2K contracts considering flash data from CME Group.  Volume, in the same line, shrank for the third straight session, now by around 8.8K contracts.

Gold now looks to $1,860

Friday’s moderate pullback in gold prices was accompanied by shrinking open interest and volume, hinting at the idea that further downside looks out of favour in the very near term. There is a minor hurdle at the 50-day SMA at $1,836 ahead of the Fibo level at $1,860 per ounce troy.