Gold Futures: Further consolidation on the cards

Open interest in gold futures markets extended the downtrend on Friday, now by around 1.2K contracts according to preliminary figures from CME Group. Volume followed suit and shrank for the second session in a row, this time by around 62.8K contracts.

Gold remains supported by the 200-day SMA

Friday’s small uptick in gold prices was amidst shrinking open interest and volume, leaving the prospects for extra gains somewhat diminished in the very near term. In the meantime, the precious metal appears well supported by the 200-day SMA around $1,840.