A sustained decline appears not favoured
CME Group’s flash data for gold futures markets noted traders trimmed their open interest positions by more than 10K contracts on Thursday, resuming the downtrend following Wednesday’s build. On the other hand, volume went up for the third session in a row, this time by nearly 50K contracts.
Gold appears supported around $1900
Thursday’s strong decline in gold prices came in tandem with shrinking open interest. That said, a sustained retracement looks unlikely in the very near term, while the recent support in the $1900 region per ounce troy should hold the downside for the time being.
