Gold Futures: A deeper pullback is out of favour

Open interest in gold futures markets shrank by around 14.2K contracts on Tuesday according to preliminary readings from CME Group. Volume, instead, reversed two consecutive daily pullbacks and went up by around 52.3K contracts.

Gold: Next on the downside comes $1970

Tuesday’s marked retracement in gold prices was on the back of diminishing open interest and suggests that extra weakness seems unlikely for the time being. The commodity, in the meantime, is expected to meet the next support of note around $1970, where coincides lows seen in the second half of April and the temporary 55-day SMA.