Open interest in gold futures markets shrank by just 958 contracts after two consecutive daily pullbacks considering flash data from CME Group. On the other hand, volume extended the erratic activity and rose by around 53.1K contracts.

Gold faces further consolidation near term

Gold traded within a narrow range on Tuesday, keeping the range bound theme well in place for yet another session. The small drop in open interest plays against further upside in the very near term and leaves intact the prospect for further consolidation for the time being.