Gold Futures: Further losses not favoured near term

Open interest in gold futures markets shrank by around 6.3K contracts at the end of last week and partially reversed the previous daily build, according to preliminary readings from CME Group. Volume, in the same line, dropped for the second session in a row, this time by more than 135K contracts.

Gold remains supported around $1,700

Gold prices revisited the $1,700 region once again on Friday, just to rebound afterwards albeit closing with modest losses. The downtick, however, was amidst diminishing open interest and volume, hinting at the view that a drop below that region appears not favoured for the time being.