Gold Futures: Further rebound appears not favoured

CME Group’s flash data for gold futures markets noted open interest shrank for the fifth consecutive session on Wednesday, this time by around 5.5K contracts. Volume, instead, increased for the second straight session, now by around 36.5K contracts.

Gold looks capped by $1,740

Gold prices edged higher on Wednesday in the wake of the FOMC event and reached the key $1,740 level. The move, however, was amidst shrinking open interest and leaves the prospects for further upside somewhat limited for the time being.