Gold Futures: A sustained drop appears not favoured

Pablo Piovano FXStreet

CME Group’s flash data for gold futures markets noted traders reduced their open interest positions for the second session in a row on Tuesday, this time by around 2.5K contracts. Volume followed suit and shrank for the third consecutive day, this time by nearly 6K contracts.

Gold faces the next hurdle at $1945

Tuesday’s daily decline in gold prices was in tandem with shrinking open interest and volume, which is indicative that a deeper retracement appears not favoured for the time being. Against that, the yellow metal faces an interim resistance around the 100-day SMA near $1945 for the time being.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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