Gold Futures: Room for further decline

Open interest in gold futures markets went up by more than 10K contracts and reversed two consecutive daily pullbacks on Wednesday considering flash data from CME Group. In the same line, volume extended the uptrend for the third session in a row.

Gold remains focused on $1,800

Prices of gold dropped further and approached the key $1,800 region on Wednesday. The negative price action came on the back of rising open interest and volume, which is indicative that extra losses remain in the pipeline in the very near term. Against that, the key level at $1,800 still emerges as the big magnet for occasional bearish attempts.