Gold Futures: Downside looks limited

According to advanced figures from CME Group for gold futures markets, open interest shrank by around 17.8K contracts after two daily builds in a row on Wednesday. Volume, instead, remained choppy and went up by around 158.7K contracts, offsetting the previous pullback.

Gold remains supported around $1,800

Wednesday’s sharp selloff in prices of gold was on the back of shrinking open interest, indicative that a deeper pullback might be out of favour in the very near term. However, the marked increase in volume allows for the continuation of the downside, which is expected to meet solid support around the $1,800 mark per ounce troy.