Gold Futures: Further decline in store near term

CME Group’s flash data for gold futures markets noted open interest rose by nearly 4K contracts on Wednesday, reaching the second daily advance in a row. Volume followed suit and resumed the uptrend, this time increasing by almost 15K contracts.

Gold now targets the 200-day SMA

Gold prices extended the weekly leg lower on Wednesday on the back of rising open interest and volume, leaving the yellow metal vulnerable to further pullbacks in the short-term horizon. That said, the next support of note for bullion emerges at the 200-day SMA, today at $1833.