Gold Futures: Extra gains appear temporary

Traders scaled back their open interest positions by around 10.5K contracts on Friday, extending the inconclusive performance seen as of late. On another line, volume increased for the second session in a row, this time by nearly 125.1K contracts.

Gold: a test of $1,600/oz is not ruled out

The continuation of the risk aversion sentiment in the global markets could motivate the ounce troy of gold to extend the rebound to the key $1,600 mark in the short-term horizon. While rising volume favours this scenario, shrinking open interest seen as of late could prompt some consolidation.