Gold Futures: Further rangebound likely

Open interest in Gold futures markets shrunk by nearly 1.6K contracts on Friday, clinching the second drop in a row in light of preliminary figures from CME Group. Volume, in the same line, went down for the second consecutive day, now by almost 127K contracts.

Gold still supported by the 100-day SMA

Prices of the ounce troy of the yellow metal are attempting a consolidative range just above the 100-day SMA, today around $1,846. Friday’s negative price action in gold amidst diminishing open interest and volume leaves the scenario of further consolidation unchanged, at least in the very near-term.