Gold Futures: Room for extra losses

Traders added around 1.5K contracts to their open interest positions in gold futures markets on Wednesday, reversing at the same time three consecutive daily pullbacks, all according to flash data from CME Group. Volume followed suit and went up by almost 84K contracts.

Gold faces strong support around $1,800

Wednesday’s sharp pullback in gold prices was amidst rising open interest and volume, opening the door to the continuation of the downtrend in the very near term. That said, the $1,800 mark per ounce troy now emerges as the next key support for the yellow metal.