Gold Futures: Further downside unlikely

Open interest in gold futures markets shrank for the second session in a row on Thursday, this time by around 10.4K contracts according to preliminary readings from CMR Group. In the same line, volume remained choppy and dropped by around 18.3K contracts.

Gold looks contained around $1,800

Gold prices extended the bearish trend and closed below the key $1,800 mark per ounce troy on Thursday. The move was amidst shrinking open interest and volume, suggesting that a deeper drop appears out of favour in the very near term. In the meantime, the yellow metal looks well supported around the $1,800 mark.