Gold Futures: Extra losses look limited

Open interest in gold futures markets shrunk for the second session in a row on Wednesday, this time by nearly 2.5K contracts according to flash data from CME Group. In the same line, volume extended the downtrend for yet another session and dropped by around 99.3K contracts.

Gold eyes a test of $1,800

Gold prices remain on the defensive and extended the drop to new multi-day lows. Wednesday’s negative price action was amidst diminishing open interest and volume, hinting at the idea that further downside should be limited. Against that, the yearly lows in the $1,800 area per ounce emerges as the next support of relevance.