Gold Futures: Probable rebound near term

Open interest in gold futures markets shrank by around 3.1K contracts on Tuesday, reversing three consecutive daily builds according to preliminary readings from CME Group. Volume, instead, extended the choppy activity and rose by around 15.3K contracts.

Gold could attempt a bounce to $1,700

Tuesday’s brief test of the $1,660 region was amidst shrinking open interest, which removes strength from further decline and remains supportive of a near-term rebound. Against that, gold prices could attempt a move to the key hurdle at $1,700 per ounce troy.