Gold Futures: Further consolidation lies ahead

Open interest in gold futures markets reversed two consecutive daily builds and shrank by around 3.1K contracts on Wednesday, according to preliminary readings from CME Group. On the other hand, volume increased sharply for the second straight day, this time by around 87.5K contracts.

Gold looks supported by $1,650

Wednesday’s decent rebound in gold prices was amidst the ongoing erratic performance and in tandem with shrinking open interest and a marked increase in volume. That said, the continuation of the current range bound theme appears on the cards for the time being, with decent support in the $1,650 zone per ounce troy.