Gold Futures: Downside looks limited

Traders scaled back their open interest positions in gold futures markets for yet another session on Wednesday, this time by almost 2.8K contracts according to preliminary figures from CME Group. on the opposite side, volume increased for the second straight session, now by nearly 92.8K contracts.

Gold looks supported around $1,700/oz

Gold’s negative price action on Wednesday was amidst decreasing open interest, leaving the likeliness of a deeper pullback somewhat marginal and with solid support around the $1,700 neighbourhood per ounce for the time being.