Gold Futures: Further gains could be losing momentum

Open interest in gold futures markets extended the downtrend on Friday and shrank by around 1.5K contracts according to preliminary figures from CME Group. Volume, instead, rose for the second session in a row, this time by around 12.7K contracts.

Gold remains supported around $1,780

Gold prices reversed the previous day’s pullback on Friday amidst shrinking open interest, which could be indicating that extra gains from here appear not favoured in the very near term. The uptick in volume, however, could allow for further gains to test the $1,820 area, where sits the 20-day SMA.