Gold Futures: Downtrend could be losing traction

Open interest in gold futures markets shrank for the third session in a row on Friday, this time by around 14.1K contracts according to flash data from CME Group. In the same line, volume dropped for the second consecutive session, now by around 164.5K contracts.

Gold looks supported around $1,800

Gold remained under pressure and dropped significantly in past sessions after hitting new peaks past the $1,850 mark per ounce troy (January 25). Friday’s downtick was on the back of shrinking open interest and volume, which could prompt some loss of downside momentum in the yellow metal. That said, the precious metal appears initially supported around the $1,780 region so far.