Gold Futures: Extra losses appear not favoured

Pablo Piovano FXStreet

CME Group’s flash data for gold futures markets noted traders reduced their open interest positions for yet another session on Thursday, this time by nearly 3K contracts. On the other hand, volume kept the choppiness intact and increased by around 50.6K contracts after the previous daily drop.

Gold: Interim support comes at the 55-day SMA

Thursday’s drop in gold prices was amidst shrinking open interest, which is supportive that a sustained decline appears not favoured in the very near term. Extra downside in the yellow metal is expected to meet a provisional support at the 55-day SMA at $1846 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.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.