Gold Futures: Further consolidation looks likely near term

Open interest in gold futures markets reversed three consecutive daily pullbacks and increased by around 4.7K contracts on Wednesday considering advanced prints from CME Group. On the other hand, volume shrank sharply by around 192.8K contracts, the largest single day drop since February 25.

Gold: Upside remains capped by $1960

Wednesday’ uptick in prices of gold was amidst rising open interest, which is indicative of further gains in the very near term. Against this, the precious metal is expected to extend the side-lined trading for the time being with the upper end of the range around the $1960 region.