Gold Futures: Near-term knee-jerk on the cards

Open interest in gold futures markets shrank for the second session in a row at the end of last week, this time by around 2.5K contracts according to preliminary readings from CME Group. Volume, instead, went up by around 13.3K contracts, reversing the previous daily pullback.

Gold: Next on the downside comes $1900

Friday’s daily gains in gold prices came on the back of shrinking open interest, which hints at the idea that further gains appear not favoured for the time being. In case loses accelerate, the precious metal is expected to meet the next contention of relevance around the $1900 region per troy ounce.