Gold Futures: Potential rebound on the cards

Open interest in gold futures markets shrank by around 4.2K contracts after two daily builds in a row on Thursday, according to advanced prints from CME Group. Volume followed suit and went down for the second straight session, this time by around 155.6K contracts.

Gold: Next on the upside emerges the 200-day SMA

Prices of the ounce troy of gold closed with marginal gains and near recent lows on Thursday. Bullion looks consolidative in the lower end of the range and amidst shrinking open interest and volume, hinting at the idea that a deeper retracement is not favoured in the very near term. On the upside, the precious metal should regain the key 200-day SMA, to alleviate the downside pressure.