Open interest in gold futures markets went up for the second session in a row on Wednesday, this time by more than 5K contracts according to preliminary readings from CME Group. Volume, instead, reversed four consecutive daily builds and shrank by around 34.7K contracts.

Gold: Next on the downside comes $1,721

Gold prices tumbled to levels last seen in September 2021 near $1,730 per ounce troy on Wednesday. The sharp pullback was amidst rising open interest, which leaves the door open to extra decline in the very near term. The marked drop in volume coupled with oversold levels could, however, encourage a technical rebound. The next level to watch on the downside emerges at the September 2021 low at $1,721 (September 29).