Gold Futures: Potential bounce in the near term

Open interest in gold futures markets shrank for the fourth session in a row on Tuesday, this time by around 3.2K contracts according to preliminary readings from CME Group. Volume, instead, kept the erratic performance in place and increased by around 42.3K contracts after the previous daily pullback.

Gold faces initial contention around $1900

Gold prices dropped for the second consecutive session on Tuesday. The downtick was on the back of further decline in open interest, which should be supportive of a near-term rebound. So far, the $1900 region emerges as a decent contention for the time being.