Gold Futures: Rebound likely near term

Open interest in gold futures markets shrank for the third consecutive session so far on Tuesday, this time by around 5.2K contracts considering preliminary readings from CME Group. On the other hand, volume reversed two daily pullbacks in a row and went up by around 84.6K contracts.

Gold could slip back to $1,700 and below

Tuesday’s moderate pullback in gold prices was amidst shrinking open interest, allowing for some recovery in the very near term. The yellow metal, in the meantime, remains under heavy pressure and a move lower to the $1,700 mark per ounce troy cannot be ruled out.