Gold Futures: Rebound likely near term

In light of preliminary readings for Gold futures markets from CME Group, traders scaled back their open interest positions for yet another session on Tuesday, now by around 22.6K contracts. On the other hand, volume went up by around 3.2K contracts following two straight drops.

Gold still capped by $1,650/oz

Tuesday’s negative price action in the ounce troy of gold was amidst declining open interest, which should keep the downside somewhat limited and paving the way for a probable rebound in the short-term horizon.