Gold Futures: Downside appears contained

CME Group’s flash data for gold futures markets saw traders trim their open interest positions for yet another session on Wednesday, this time by around 2.2K contracts. Volume, instead, went up for the third session in a row, now by around 30.8K contracts.

Gold looks supported by the 200-day SMA

Wednesday’s downtick in gold prices was accompanied by shrinking open interest, which is indicative that a deeper retracement could be out of favour in the very near term. Against this, the key 200-day SMA at $1,839 should hold the initial test for the time being.