Gold Futures: Further decline on the cards

CME Group’s advanced figures for Gold futures markets noted open interest increased by nearly 2.7K contracts on Thursday, resuming the previous uptrend. Volume, on the other hand, reversed two consecutive builds and shrunk by around 81.7K contracts.

Gold could test the 55-day SMA at $1,726

The ounce troy of Gold has receded from recent peaks amidst increasing open interest, supporting the idea that extra losses remain in the pipeline. That said, the 55-day SMA, today at $1,726, emerges at the next target to the downside.