Gold Futures: Looks neutral/bearish near-term

Open interest in Gold futures markets shrunk by nearly 4.1K contracts according to advanced readings from CME Group on Wednesday. Volume, instead, extended the erratic performance and went up by around 72K contracts.

Gold could retreat to the $1,850 level

Gold prices extended the downtrend on Wednesday amidst shrinking open interest, warning against the probability of a deeper pullback in the very near-term. The recent price action, however, does not rule out a move to the monthly lows in the $1,850 mark per ounce (November 9).