Gold Futures: Further downside on the cards

Open interest in gold futures markets shrank for the second session in a row on Tuesday, this time by around 9.1K contracts according to preliminary readings from CME Group. Volume followed suit and added to the previous drop, now by around 21.1K contracts.

Gold now looks to revisit $1,600

Tuesday’s uptick in gold prices was on the back of shrinking open interest and volume and hinted at the view that further upside seems unconvincing. That said, the resumption of the downtrend appears likely in the very near term and with the next support at the key $1,600 support.