Gold Futures: A sustained decline seems unlikely

Considering advanced prints from CME Group for gold futures markets, open interest shrank for the fourth session in a row on Wednesday, this time by more than 2k contracts. Volume followed suit and dropped by around 15.7K contracts.

Gold faces decent contention around $1900

Gold prices extended the weekly leg lower on Wednesday and printed new multi-week lows near $1900. The continuation of the decline was on the back of shrinking open interest and volume, removing strength from a sustained drop in the very near term. In the meantime, the $1900 region per troy ounce is expected to offer decent contention for the time being.