Gold Futures: Room for a deeper decline

Open interest in gold futures markets rose by around 2.5K contracts on Wednesday following two daily drops in a row according to preliminary readings from CME Group. In the same line, volume increased by around 44.3K contracts, reversing the previous pullback.

Gold now targets the August low at $1,754

Gold prices extended the weekly leg lower on Wednesday amidst rising open interest and volume. That said, further weakness appears on the cards in the very near term and with the immediate support at the August low at $1,754 per ounce troy (August 3).