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CME Group’s advanced figures for gold futures markets noted open interest shrunk for the second session in a row on Friday, this time by around 12.K contracts. On the opposite side, volume extended the choppy activity and went up by around 292.5K contracts.

Gold: A drop to $1,760 looks out of favour

Gold prices broke below the key 200-day SMA on Friday, opening the door to a deeper pullback in the short-term horizon. However, traders scaled back their open interest positions, hinting at the idea that further decline could be somewhat contained. That said, a move to the November’s low in the $1,760 region looks unlikely for the time being.