Gold Futures: Further range bound in the pipeline

In light of preliminary readings from CME Group for gold futures markets, open interest dropped for the third session in a row on Wednesday, this time by around 6.7K contracts. In the same direction, volume extended the erratic performance and went down by around 66.2K contracts.

Gold poised for further consolidation below $1,800

Wednesday’s positive price action in gold was amidst shrinking open interest and volume, removing strength from occasional bullish attempts and favouring some consolidative mood in the very near term instead. In the meantime, the 200-day SMA around $1,790 and the key $1,800 mark per ounce troy keep capping the upside for the time being.