Gold Futures: Further correction on the cards

Open interest in gold futures markets resumed the uptrend and went up by around 13.2K contracts on Wednesday, the largest single day build since February 17 according to preliminary readings from CME Group. Volume, instead, reversed three consecutive daily builds and shrank by nearly 100K contracts.

Gold faces the next support at $1880

Gold prices retreated sharply on Wednesday on the back of the resumption of the risk-on sentiment in the global markets. The downtick was amidst rising open interest, which is indicative that extra losses remain in the pipeline. Against that, the $1880 area now emerges as the next support of note for the precious metal.