Gold Futures: Further decline remains on the table

CME Group’s preliminary readings for gold futures markets noted open interest dropped by around 1.6K contracts on Tuesday, partially offsetting the previous daily build. In the same line, volume shrank by around 11.6K contracts, extending the erratic performance.

Gold faces resistance around $1,770

Gold prices tested lows near $1,750 on Tuesday just to rebound soon afterwards albeit still closing the session in the negative territory. The bounce was on the back of shrinking open interest and volume, allowing for the continuation of the bearish tone for the time being. Intermittent bullish attempts, in the meantime, appears capped by the $1,770 region.