Gold Futures: Scope for a deeper correction – UOB

According to preliminary data for Gold futures from CME Group, traders increased their open interest positions by nearly 1.2K contracts on Monday, reversing at the same time three consecutive daily drops. On the other hand, volume extended the choppy activity and went down by around 167.4K contracts.

Gold could slip back to the $1,980 area

Prices of the ounce troy of Gold remain in corrective-mode following recent all-time highs near $2,080 (August 7). Rising open interest amidst Monday’s negative price action suggests that further downside lies ahead, with the potential target at the Fibo level (of the July-August rally) near $1,980 per ounce.