Gold Futures: Near-term consolidation on the cards

Open interest in gold futures markets rose by more than 2K contracts on Tuesday, reversing at the same time a downtrend in place since May 16, according to preliminary readings from CME Group. Volume, instead, shrank for the second consecutive session, now by nearly 47K contracts.

Gold faces some range bound near term

Tuesday’s inconclusive price action in gold was on the back of increasing open interest and declining volume, which exposes some near-term consolidation around current levels. In the meantime, the yellow metal remains well supported by the $1930 region per ounce troy for the time being.