Gold Futures: Probable rebound near term

Open interest in gold futures markets shrank for the fifth consecutive session on Friday, this time by more than 2K contracts according to advanced prints from CME Group. On the other hand, volume went up by around 4.8K contracts after two daily pullbacks in a row.

Gold now targets the $1950 mark

Friday’s drop in gold prices was in tandem with shrinking open interest, hinting at the idea that further decline appears not favoured and allowing for a near-term rebound instead. That said, the immediate target comes at the $1950 mark per ounce troy.