Gold Futures: Scope for further losses

Open interest in gold futures markets resumed the uptrend and increased by more than 1K contracts on Thursday according to preliminary readings from CME Group. Volume, instead, dropped for the second session in a row, now by more than 15K contracts.

Gold faces an interim support at $1900

Gold prices extended the weekly leg lower on Thursday amidst rising open interest, which hints at the view than further losses remain in store for the yellow metal in the very near term. That said, there is a minor support at the round level of $1900 per troy ounce, while a deeper decline is expected to face the next relevant contention at the 200-day SMA near $1850.