Open interest in gold futures markets shrank by around 1.6K contracts on Friday after two consecutive daily pullbacks, according to preliminary readings from CME Group. Volume followed suit and rose for the fourth session in a row, this time by around 16.6K contracts.

Gold now looks to $1,600

Friday’s strong drop in gold prices below the $1,650 region was amidst rising open interest and volume, leaving the door open to the continuation of the leg lower and with the immediate target at the $1,600 mark per ounce troy.