Gold Futures: Extra downside looks unlikely

Open interest in Gold futures markets shrunk by around 10.8K contracts at the beginning of the week following four consecutive daily builds according to preliminary figures from CME Group. Volume, instead, reversed the previous drop and went up sharply by around 321.3K contracts, the largest single day advance since mid-August.

Gold seen resuming the upside

Monday’s strong pullback in gold prices was amidst shrinking open interest, leaving the probability of a deeper pullback somewhat limited in the very near-term. That said, the precious metal is seen targeting once again the $1,900 mark per ounce in the next sessions.