Gold Futures: Further losses not favoured

Open interest in gold futures markets shrank by around 21.8K contracts at the end of last week in light of preliminary readings from CME Group. Volume followed suit and dropped for the second session in a row, this time by around 96.2K contracts.

Gold faces tough resistance near $1,840

Friday’s drop in gold prices was on the back of shrinking open interest and volume, leaving the prospects of extra declines somewhat curtailed. That said, occasional bullish attempts face strong hurdle around the $1,840 mark per ounce troy in the very near term.