Gold Futures: Upside bias loses momentum

Traders scaled back their open interest positions for the fourth session in a row on Thursday, this time by nearly 17.6K contracts as per flash data from CME Group. Volume, too, shrunk by almost 77.2K contracts, extending the choppy activity seen as of late.

Gold faces strong resistance at $1,600/oz

The ounce troy of the precious metal is extending the move up on the back of rising uncertainty and concerns regarding the Wuhan coronavirus. Wednesday’s positive price action was in tandem with diminishing open interest and volume, opening the door for a near-term reversion. That said, Gold should face a tough barrier in the $1,600 area per ounce in the near-term.