Gold Futures: Rebound likely short term – UOB

Open interest in gold futures markets resumed the downside and shrank by just 834 contracts on Monday, according to advanced prints from CME Group. Volume followed suit and dropped by around 28.4K contracts after four consecutive daily builds.

Gold appears supported around $1,620

Gold prices started the week on the defensive amidst shrinking open interest and volume, hinting at the likeliness that further losses look not favoured and therefore a potential rebound could be in the offing. In the meantime, decent contention has so far emerged around the $1,620 level per ounce troy.