Gold Futures: Some consolidation appears on the cards

Open interest in gold futures markets shrank by nearly 1K contracts on Tuesday, partially reversing the previous daily build, according to advanced prints from CME Group. In the same line, volume dropped by around 34.5K contracts, extending the erratic performance.

Gold looks consolidative below the 200-day SMA

Tuesday’s downtick in gold prices was in tandem with shrinking open interest, supportive of the idea that further downside does not appear favoured in the very near term. Against that, bullion could embark on a consolidative phase around the $1,820 per ounce troy.