Gold Futures: Further consolidation looks likely

Open interest in gold futures markets shrank for the second session in a row on Friday, now by nearly 2K contracts according to preliminary readings from CME Group. Volume, instead, went up by around 29.4K contracts following two consecutive daily builds.

Gold faces initial resistance near $1950

Gold’s inconclusive price action came on the back of shrinking open interest and rising volume on Friday. Against that, the precious metal could attempt some consolidation in the very near term and with occasional bullish attempts so far capped by the $1950 region per troy ounce, and area also coincident with the interim 100-day SMA.