Gold Futures: Downside looks limited

Traders reduced their open interest positions by around 5.5K contracts on Thursday according to flash data from CME Group, reversing at the same time three consecutive daily builds. In the same line, volume shrunk by around 24.7K contracts following two advances in a row.

Gold sticks to the consolidative range

Prices of the ounce troy of gold keep the consolidation well and sound so far this week. Thursday’s negative price action was in tandem with diminishing open interest and volume, all indicative that further retracement appears unlikely in the short-term horizon and therefore leaving unchanged the prospects of extra rangebound.