Gold Futures: Further recovery seems unlikely

Considering advanced prints from CME Group for gold futures markets, open interest prolonged the decline and shrank by around 3.5K contracts on Tuesday. Volume followed suit and decreased by nearly 117K contracts.

Gold points to extra range bound

Tuesday’s uptick in gold prices came on the back of shrinking open interest and volume, removing some strength from the continuation of the uptrend in the very near term. That said, there is still scope for further consolidation, while the weekly high at the $1,763 (November 28) emerges as the immediate hurdle.