Gold Futures: A sustained drop appears unlikely

CME Group’s flash data for gold futures markets noted traders reduced their open interest positions by around 5.2K contracts at the beginning of the week, reversing the previous daily build. Volume followed suit and shrank by nearly 150K contracts.

Gold faces decent support around $1900

Monday’s downtick in gold prices was on the back of shrinking open interest and volume, which removes strength from a potential deeper pullback in the very near term. Against that, the yellow metal is expected to meet firm contention around the $1900 region per troy ounce.