Gold Futures: Room for extra decline

Open interest in gold futures markets rose for the second session in a row on Tuesday, now by around 2.4K contracts according to preliminary readings from CME Group. Volume followed suit and reversed two consecutive daily pullbacks and went up by around 90.2K contracts.

Gold: Focus on the 2022 low at $1,680

Tuesday’s abrupt drop in gold prices came on the back of rising open interest and volume, which is indicative that further weakness lies ahead for the precious metal. Against that, the YTD low at $1,680 is still expected to hold the downside for the time being.