Gold Futures: Deeper pullbacks not likely

Pablo Piovano FXStreet

Open interest in gold futures markets shrunk for the fourth consecutive session on Wednesday, this time by nearly 6K contracts according to preliminary figures from CME Group. Volume, in the same line, extended the erratic performance and receded by around 169.5K contracts.

Gold remains supported around $1,680/oz

Prices of the ounce troy of the precious metal briefly pierced the $1,700 mark on Wednesday, although they managed to close slightly in the red and just above it afterwards. Shrinking open interest and volume therefore keep occasional bearish attempts in gold somewhat contained and with strong support in the $1,680 level per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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