Gold Futures: Downside could be losing momentum

Open interest in gold futures markets shrunk for the third session in a row at the beginning of the week, this time by just 937 contracts according to preliminary figures from CME Group. In the same line, volume went down by around 133.5K contracts after three consecutive daily builds.

Gold now looks to $1,670 ahead of a potential rebound

Gold prices extended the downtrend on Monday and already trades at shouting distance from the key support at the $1,700 mark per ounce troy. Shrinking open interest and volume play against a deeper pullback that could extend to the $1,670 level in the near-term.