Gold Futures: Sustained decline not favoured
|Open interest in gold futures markets shrank for the third session in a row on Monday, this time by nearly 7K contracts according to preliminary readings from CME Group. Volume followed suit and dropped for the second straight session, now by around 130.7K contracts.
Gold: Decent support comes around $1900
Prices of the ounce of gold extended the decline for the third consecutive day on Monday. The daily retracement, however, came against the backdrop of diminishing open interest and volume and this underpins the idea that a sustained decline remains out of favour in the very near term. Further weakness should meet firm contention around the weekly low at $1896 (January 18).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.