Gold Futures: Corrective move in the offing

Open interest in gold futures markets dropped for the fourth consecutive session on Friday, this time by nearly 11K contracts according to preliminary readings from CME Group.

Volume followed suit and shrank markedly by around 207.1K contracts, reversing two consecutive daily pullbacks.

Gold: Next support comes around $1940
Friday’s decent advance in gold prices was on the back of shrinking open interest and volume, opening the door to a corrective move in the very near term. In the meantime, the yellow metal is expected to meet initial contention around the $1940 region per troy ounce.