Gold Futures: Further decline not favoured

Open interest in gold futures markets shrank by around 6.4K contracts on Tuesday according to flash data from CME Group. On the other hand, volume increased for the second session in a row, this time by nearly 72K contracts.

Gold looks supported near $1,800

Tuesday’s strong pullback in gold prices was amidst shrinking open interest, leaving the prospect for further retracement somewhat curtailed for the time being. That said, the precious metal is likely to remain well supported around the $1,800 mark per ounce troy.