Gold Futures: Room for further decline

Open interest in gold futures markets shrank for the third session in a row on Wednesday, this time by around 3.6K contracts considering advanced figures from CME Group. Volume followed suit and dropped by around 34.2K contracts, resuming the downtrend following the previous daily build.

Gold appears supported around $1900

Gold prices rebounded from the $1900 region and ended the session with modest gains on Fed’s day. The bounce, however, was amidst shrinking open interest and volume, hinting at the idea that the rebound might be short-lived in the very near term.