Gold Futures: Further consolidation likely

Open interest in gold futures markets resumed the downtrend and shrank by nearly 5K contracts on Tuesday according to advanced figures from CME Group. On the other hand, volume rose for the third session in a row, this time by around 4.5K contracts.

Gold remains supported near $1900

Tuesday’s downtick in gold prices was on the back of shrinking open interest, removing strength from a potential deeper pullback and allowing some consolidative move in the very near term. Against this, prices of bullion appear supported around the $1900 region so far.