Gold Futures: Further downside appears limited

Open interest in gold futures markets resumed the downtrend and shrunk by around 3.3K contracts on Thursday considering preliminary figures from CME Group. Volume, instead, keeps the choppy activity unchanged after rising by nearly 117K contracts.

Gold remains supported by the 200-day SMA

Thursday’s strong pullback in gold prices was in tandem with shrinking open interest, hinting at the idea that the continuation of the decline would not be favoured in the very near-term. In the meantime, the 200-day SMA around $1,400 is expected to hold the downside for the time being.