Gold Futures: Room for further decline

Open interest in gold futures markets rose for the second session in a row on Friday, this time by around 5.3K contracts according to advanced prints from CME Group. Volume, instead, shrank for the second consecutive day, now by around 41.2K contracts.

Gold remains capped by $1,880

Gold prices reversed two daily advances in a row on Friday and kept hovering around the key 200-day SMA near $1,840. The downtick was in tandem with increasing open interest, which is supportive of further weakness in the very near term. On the upside, prices of the precious metal appear limited by the June high around $1,880.