Gold Futures: Downside remains shallow

CME Group’s preliminary data for Gold futures markets noted open interest shrunk for the fourth consecutive session on Wednesday, this time by nearly 3K contracts. On the opposite direction, volume reversed two drops in a row and increased by almost 62.5K contracts.

Gold looks contained around $1,630/oz

Prices of the ounce troy of the precious metal met support in the $1,630 region so far, where is also located the 21-day SMA. Wednesday’s decline was on the back of another drop in open interest, removing impetus for a deeper retracement and instead favouring a near-term recovery.