Gold Futures: Downside could be losing momentum
Open interest in gold futures markets dropped by around 1.4K contracts after two consecutive daily builds on Tuesday, according to preliminary readings from CME Group. Volume, instead, remained erratic and increased by around 12.3K contracts following the previous daily drop.
Gold faces a tough support around $1800
Gold prices remained in free fall on Tuesday amidst shrinking open interest, which could be indicative that the selling pressure could be mitigating somewhat in the very near term. In the meantime, the precious metal is expected to meet strong contention around the $1800 region per troy ounce.