Gold Futures: Extra rebound looks unconvincing

Open interest in gold futures markets dropped for yet another session on Tuesday, this time by around 1.4K contracts according to preliminary readings from CME Group. Volume, instead, resumed the uptrend and rose by around 65.4K contracts.

Gold faces initial resistance around $1980

Tuesday’s uptick in gold prices came amidst shrinking open interest, which leaves the prospects for extra gains somewhat curtailed in the very near term. Furthermore, the precious metal should meet a temporary hurdle around the 55-day SMA at $1980 per ounce troy.