Gold Futures: Further downside remains on the cards

Traders increased their open interest positions for the third session in a row on Monday, this time by around 15.2K contracts according to preliminary readings from CME Group. Volume, in the same line, went up by around 20.3K contracts, reaching the fourth consecutive daily build.

Gold faces support in the $1,680/70 band

Gold prices seem to have met some decent contention in the $1,680 region so far. Monday’s pullback was on the back of rising open interest and volume, allowing for the continuation of the downtrend in the very near-term. Oversold conditions, however, might prompt some bouts of strength.