Gold Futures: Downside appears to lose traction
|Open interest in gold futures markets shrank by almost 1K contracts after three consecutive daily pullbacks on Tuesday, according to preliminary readings from CME Group. Volume, instead, remained choppy and went up by around 123.5K contracts.
Gold: A drop to the 200-day SMA is not ruled out
Gold prices extended the pessimism in the first half of the week, breaking below the $1960 level amidst shrinking open interest on Tuesday. That said, a deeper pullback appears to be losing momentum in the very near term, although the sharp increase in volume suggests that a probable decline to the 200-day SMA around $1935 per troy ounce should not be ruled out for the time being.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.