Open interest in gold futures markets resumed the uptrend and went up by around 1.2K contracts at the end of last week according to preliminary readings from CME Group. Volume followed suit and increased for the second session in a row, this time by nearly 63K contracts.

Gold could slip back to $1,700

Gold prices retreated sharply on Friday amidst rising open interest and volume, opening the door further losses in the very near term. That said, there is an initial support at $1,711 (low July 27) ahead of a probable visit to the round level at $1,700 per ounce troy.