Open interest in gold futures markets rose by just 300 contracts on Tuesday after two daily drops in a row according to preliminary readings from CME Group. Volume, instead, shrank for the second straight session, now by more than 105K contracts.

Gold faces some consolidation near term

Tuesday’s uptick in gold prices was on the back of a small increase in open interest and a sharp drop in volume, opening the door to some consolidation in the very near term. So far, the $2050 region keeps limiting occasional bullish attempts, while the $1980 zone holds the downside.