Gold Futures: Scope for a near-term rebound

Open interest in gold futures markets extended the downtrend for yet another session on Wednesday, this time by around 3.8K contracts according to preliminary readings from CME Group. In the same line, volume shrank for the second session in a row, now by around 159.6K contracts.

Gold looks supported near $1,780

Gold prices dropped for the fifth session in a row on Wednesday. The daily downtick was on the back of shrinking open interest and volume and leaves the door open to a rebound in the very near term. That said, the $1,780 area per ounce troy still remains quite a decent support for occasional bearish moves in the precious metal.