Gold futures: Further downside is not ruled out

According to CME Group’s preliminary data for Gold futures markets, both open interest and volume went down on Monday, by almost 13K contracts and nearly 357K contracts, respectively.

Gold seen retesting the $1,560/oz region

Prices of the ounce troy of gold edged higher at the beginning of the week, mainly supported by short covering. In fact, shrinking open interest and volume in combination with positive price action should lead to some loss of momentum and a potential knee jerk in the short-term horizon. That said, the next support can be seen at Friday’s low near $1,560 per ounce.