Open interest in gold futures markets dropped for yet another session on Wednesday, this time by nearly 4K contracts, according to preliminary readings from CME Group. Volume followed suit and went down by around 91.2K contracts, reversing the previous daily build.

Gold faces further consolidation in the near term

Wednesday’s small gains in gold prices were amidst shrinking open interest and volume, and this is suggestive that a more serious rebound seems unlikely for the time being. That said, the precious metal appears poised for further consolidation in the very near term, with the floor around the $1930 region.