Gold Futures: Further downside on the cards

Open interest in Gold futures markets extended the downside for yet another session on Monday, this time by more than 1k contracts according to flash data from CME Group. in addition, volume prolonged the erratic performance and shrunk for nearly 130.2K contracts.

Gold could re-test the 100-day SMA near $1,650/oz

Gold prices rose at the beginning of the week amidst declining open interest and volume, hinting at the likeliness that further upside is not favoured in the very near-term. That said, a move to the 100-day SMA in the $1,650 region per ounce should not be ruled out just yet.