Gold Futures: A deeper pullback seems unlikely

CME Group’s flash data for gold futures markets noted traders scaled back their open interest positions for the second session in a row on Friday, this time by around 3.5K contracts. Volume followed suit and dropped by around 34.5K contracts.

Gold appears supported around $1945

Gold prices dropped for the third session in a row at the end of last week. The continuation of the weekly decline was on the back of shrinking open interest and volume, which removes strength from further losses in the very near term.

In the meantime, there is still decent contention around the weekly at $1945 per troy ounce (July 17).