Gold Futures: Extra losses appear not favoured

Open interest in gold futures markets shrank for the fourth consecutive session on Tuesday, this time by around 1.4K contracts according to preliminary figures from CME Group. In the same line, volume dropped for the third straight session, now by around 22.7K contracts.

Gold looks capped by the 200-day SMA

Prices of the yellow metal briefly tested the 200-day SMA past $1830 on Tuesday, just to retreat afterwards and close the session with modest losses. This move was on the back of shrinking open interest and volume and suggests that extra decline in gold now seems out of favour.