Gold Futures: Further downside looks contained

Traders trimmed their open interest positions by nearly 7K contracts on Tuesday, reversing the previous day’s build according to preliminary figures from CME Group. In the same line, volume shrunk for the fourth consecutive session, now around 20.8K contracts.

Gold stays supported by $1,800/oz

Gold prices receded markedly on Tuesday. The daily pullback, however, was on the back of shrinking open interest and volume, leaving the probability of extra downside limited. Looking south, the precious metal looks well supported in the $1,800 area per ounce.