Gold Futures: Further decline not favoured

Traders scaled back their open interest positions in gold futures markets for the third consecutive session on Tuesday, this time by just 846 contracts considering advanced figures from CME Group. In the same line, volume shrank by around 92.5K contracts, reversing the previous build.

Gold remains supported near $1,850

Gold prices extended the leg lower on Tuesday. The downtick, however, was accompanied by declining open interest and volume, indicative that further retracements are not favoured and opening the door at the same time to a potential rebound in the very near term.