Gold Futures: Further losses not ruled out

Open interest in gold futures markets went up for the second session in a row on Friday, this time by around 2.6K contracts according to advanced prints from CME Group. In the same line, volume extended the choppy activity and rose by around 7.4K contracts.

Gold could now target the 200-day SMA

Gold prices briefly tested the $1920 region on Friday, although it later faded the move and closed with marginal gains for the day. The move was amidst rising open interest and volume and leaves the door open to further downside in the near term, with the next key target at the 200-day SMA at $1834.