Gold Futures: Further consolidation on the cards

Open interest in gold futures markets reversed two daily builds and increased by around 7.8K contracts on Thursday considering preliminary readings from CME Group. In the same direction, volume rose by nearly 50K contracts and extended the choppy activity seen as of late.

Gold capped by the $1,800 area

Prices of the yellow metal surpassed the key $1,800 mark per ounce troy on Thursday just to retreat afterwards and closed once again below it. The move was amidst rising open interest and volume and could open the door to some weakness in the very near term. That said, gold is expected to remain with the current consolidative range for the time being.