Gold Futures: A deeper drop appears unlikely

Open interest in gold futures markets extended the decline for yet another session on Wednesday, this time by around 2.6K contracts according to preliminary readings from CME Group. Volume followed suit and resumed the downtrend, now by around 43.3K contracts.

Gold faces solid contention around $1800

Wednesday’s marked drop in gold prices was on the back of shrinking open interest and volume, suggesting that a sustained decline seems not favoured in the very near term. On the downside, there is a strong contention around the key $1800 mark per ounce troy for the time being.