Gold Futures: Downside looks exhausted

In light of preliminary readings for Gold futures markets from CME Group, traders scaled back their open interest positions for yet another day on Monday, this time by around 8.7K contracts. On the opposite side, volume rose by almost 19.2K contracts, partially offsetting the previous drop.

Gold met support near $1,450/oz

Prices of the ounce troy of the precious metal dropped and rebounded from fresh yearly lows in the vicinity of $1,450 on Monday. The move was on the back of declining open interest, which should remove some tailwinds from the idea of a deeper retracement, at least in the near-term and in light of the current oversold condition of gold.