Gold Futures: Rebound looks limited

Open interest in gold futures markets dropped for the fourth session in a row on Tuesday, this time by just 785 contracts according to preliminary readings from CME Group. Volume, instead, resumed the uptrend and went up by around 16.2K contracts.

Gold remains supported around $1860

Gold prices edged higher and extended the positive start of the week on Tuesday. The decent uptick, however, was on the back of declining open interest and leaves the probability of further bounce somewhat diminished in the very near term. In the meantime, the $1860 region still emerges as a firm contention zone.