Gold Futures: Rebound likely near term

Open interest in gold futures markets shrank for the first time after five consecutive daily builds on Monday, this time by around 3.1K contracts according to preliminary readings from CME Group. Volume followed suit and dropped by more than 74K contracts, extended the ongoing choppiness.

Gold appears supported around $1,615

Gold prices dropped for the third session in a row at the beginning of the week. The negative performance was amidst shrinking open interest and volume and removes strength from further decline in the very near term. In the meantime, the 2022 low around $1,615 per ounce troy continues to hold the downside for the time being.