Gold Futures: A deeper pullback seems unlikely

Considering preliminary figures from CME Group, open interest in gold futures markets shrank by around 3.2K contracts on Wednesday after two consecutive daily builds. In the same line, volume resumed the downtrend and dropped by around 64.3K contracts.

Gold faces extra rangebound near term

Wednesday’s negative price action in gold prices was on the back of diminishing open interest and volume, hinting at the likeliness that further decline is not favoured for the time being. That said, the yellow metal faces increasing bets for extra consolidation around the $1,800 mark per ounce troy in the very near term.