Gold Futures: Scope for further correction

Open interest in gold futures markets rose for the second session in a row on Wednesday, this time by nearly 15K contracts considering preliminary figures from CME Group. In the same line, volume went up by around 24.3K contracts, partially reversing the previous drop.

Gold: There is a minor support near $1,770

Gold prices extended the weekly leg lower on Wednesday and now challenge the key $1,800 mark. Wednesday’s downtick was on the back of rising open interest and volume, allowing for the continuation of the move in the very near term. That said, there is an interim support near $1,770, a Fibo level of the March-June rally.