Gold Futures: Room for extra downside

Traders increased their open interest positions for the third session in a row on Wednesday, this time by nearly 3K contracts considering preliminary figures from CME Group. On the other side, volume shrank by almost 31K contracts, reversing the previous build.

Gold could still re-test $1,850

Gold prices extended the weekly correction on Wednesday following recent tops beyond the $1,900 mark per ounce troy. The move was in tandem with rising open interest, leaving the door open for further retracements in the very near-term. That said, a drop to the monthly low around $1,850 should not be ruled out just yet.