Gold Futures: Further losses not favoured

CME Group’s flash data for gold futures markets noted open interest shrank for the second session in a row on Monday, this time by around 20.1K contracts, the largest single-day drop since March 10. On the other hand, volume resumed the uptrend and went up by more than 77K contracts, leaving behind Friday’s pullback.

Gold could re-target $1900

Monday’s strong retracement in prices of gold was in tandem with shrinking open interest, indicative that a deeper pullback looks unlikely in the very near term. In the meantime, the yellow metal remains well supported around the $1900 zone for the time being.