Gold Futures: A deeper pullback seems unlikely

Open interest in gold futures markets decreased for the second session in a row on Wednesday, this time by around 22.4K contracts according to preliminary readings from CME Group. Volume followed suit and shrank by nearly 13K contracts, leaving behind the previous daily builds.

Gold: Decent support emerges around $1970

Prices of gold extended the corrective decline on Wednesday amidst shrinking open interest and volume, indicating that extra weakness appears not favoured for the time being. So far, the yellow metal is expected to face a solid contention area around $1970 per ounce troy.