Gold Futures: Further decline looks unfavoured

Open interest in gold futures markets shrunk for the second session in a row on Tuesday, this time by around 4.6K contracts, according to flash data from CME Group. On the other hand, volume extended the erratic performance and rose sharply by around 116.6K contracts.

Gold looks supported by the 100-day SMA

Gold prices started the week on a negative note although they met some contention in the $1.880 region per ounce troy so far. Tuesday’s leg lower was on the back of diminishing open interest, hinting at the idea that a deeper pullback seems unlikely in the very near-term. So far, the retracement in the yellow metal appears supported by the 100-day SMA near $1,870/oz.