There was another decline in open interest in the gold futures markets on Monday after they dropped for the third consecutive session, this time by nearly 7K contracts according to preliminary readings from CME Group. The volume also fell on Monday for the second straight session, dropping by around 130.7K.
For a third consecutive day, gold prices declined on Monday, continuing their downward trend. Despite the fact that the daily retracement came against the backdrop of diminishing open interest and volume, this suggests that a sustained decline is not likely in the very near future, as there is a diminished open interest and volume. It is likely that further weakness around the weekly low of $1896 (January 18) will be matched by firm contention.
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