Gold Futures: A deeper pullback appears out of favour

Open interest in gold futures markets extended the downtrend for yet another session on Friday, this time shrinking by nearly 4K contracts according to preliminary readings from CME Group. In the same line, volume remained choppy and went down by around 49.2K contracts.

Gold: Next on the upside comes $1,786

Friday’s downtick in gold prices was amidst diminishing open interest and volume, which should mitigate the probability of further weakness in the very near term. In case the rebound resumes, the next target comes at the November peak at $1,786 per ounce troy (November 15).