Gold Futures: Extra decline not ruled out

Open interest in golf futures markets shrank for the fourth consecutive session on Tuesday, this time by just 867 contracts according to preliminary readings from CME Group. Volume, instead, went up by around 34.8K contracts after two daily drops in a row.

Gold faces initial support around $1900

Tuesday’s sharp decline and subsequent bounce off lows near $1900 was accompanied by shrinking open interest, which leaves the door open to the probability of further corrective moves in the very near term. That said, the $1900 neighbourhood per ounce troy of gold emerges as an immediate contention zone for the time being.