Gold Futures: Downside could be losing momentum

CME Group’s flash data for gold futures markets noted traders reduced their open interest positions for yet another session on Wednesday, this time by around 3.7K contracts. On the flip side, volume went up for the third session in a row, now by around 30.6K contracts.

Gold meets initial support around $1870

Gold prices retreated to six-month lows around $1870 per troy ounce on Wednesday. The sharp downtick was on the back of shrinking open interest and leaves the door open to a near-term rebound. In the meantime, the 200-day SMA at $1927 emerges as the next target for any recovery attempt.