Gold Futures: A deeper pullback seems out of favour

Open interest in gold futures dropped for the fourth session in a row on Wednesday, this time by around 2.1K contracts according to preliminary readings from CME Group. volume followed suit and shrank by around 3.5K contracts, partially reversing the previous build.

Gold remains supported by the $1930 region

Gold prices extended the downtrend on Wednesday and probed the $1940 area. The downtick, however, was on the back of shrinking open interest and volume, suggesting that a more sustained decline appears unlikely for the time being. So far, there seems to be decent support around $1930 per troy ounce.