Gold Futures: Room for extra losses

According to preliminary readings from CME Group for gold futures markets, open interest rose by around 1.4K contracts on Thursday following two daily drops in a row. In the same line, volume reversed five consecutive pullbacks and went up by nearly 145K contracts.

Gold risks a potential move to $1,760/oz

Thursday’s strong pullback in gold prices was amidst rising open interest and volume, opening the door to further decline in the short-term. That said, there is now room for a deeper pullback to the November low around $1,760 per ounce in the near-term.