Gold Futures: Further gains appear unsustainable

Open interest in Gold futures markets shrunk for yet another session on Wednesday, this time by around 8.1K contracts in light of advanced prints from CME Group. In the same line, volume dropped for the second consecutive day, now by around 40.2K contracts.

Gold: A move to $1,680 is not ruled out

Wednesday’s strong uptick in Gold prices was amidst diminishing open interest and volume, exposing the view that extra gains could lack sustainability in the very near-term at least. That said, a drop and new visit to the YTD lows around $1,680 per ounce troy should remain well on the cards for the time being.