Gold Futures: Potential decline near term

Open interest in gold futures markets increased for the third session in a row on Thursday, this time by around 14.7K contracts according to preliminary readings from CME Group. Volume followed suit and went up by around 56.8K contracts following two consecutive daily pullbacks.

Gold could slip back to $1850

Gold prices could not sustain a move past the $1900 mark on Thursday, ending the session with modest losses. The downtick was amidst rising open interest and volume, exposing further weakness in the very near term and with the immediate target at $1850 per ounce troy.