Gold Futures: Downside could take a breather

CME Group’s flash data for gold futures markets noted open interest shrank for the fourth consecutive session on Tuesday, this time by nearly 16K contracts. In the same line, volume reversed three daily builds in a row and went down by almost 35K contracts.

Gold meets support near $1,780

The intense selloff in prices of gold appears to have met some decent contention in the $1,780 area on Tuesday. The daily retracement was on the back of shrinking open interest and volume, suggesting the likeliness of a rebound in the short-term horizon. While $1,780 offers initial support, the upside looks to retake the key barrier at the $1,800 mark per ounce troy.