Gold Futures: Door open to extra losses

Open interest in gold futures markets reversed three consecutive daily pullbacks and increased by around 2.2K contracts on Wednesday considering advancing prints from CME Group. In the same line, volume rose by around 23.5K contracts after three daily pullbacks in a row.

Gold risks another visit to $1,740

Gold briefly advanced to the $1,790 level on Wednesday, although it eventually surrendered those gains and closed in the negative territory. The retracement was on the back of rising open interest and volume, which is indicative of further decline in the very near term. That said, the next support of note comes at the monthly low around $1,740.