Gold Futures: Scope for further losses near term

Traders increased their open interest positions by just 242 contracts on Friday, according to advanced prints from CME Group. Volume, instead, went down sharply by around 127.6K contracts, reversing the previous daily build.

Gold: Initial support emerges at $1800

Prices of gold dropped and tested the key $1800 mark per ounce troy on Friday. The downtick was on the back of a small increase in open interest and leaves the door open to extra losses in the very near term. In the meantime, the breach of $1800 should expose a probable test of the 2022 low at $1780 (January 28).