Gold Futures: Further downside not favoured

Open interest in gold futures markets resumed the downtrend on Friday, this time shrinking by around 12.8K contracts according to preliminary readings from CME Group. In the same line, volume dropped for the third session in a row, now by nearly 14K contracts.

Gold remains supported by the 200-day SMA

Friday’s moderate pullback in prices of gold was amidst declining open interest and volume, hinting at the idea that the continuation of the downside appears not favoured in the very near term. That said, the 200-day SMA around $1,840 emerges as a decent initial contention for the time being.