CME Group’s flash data for gold futures markets noted open interest extended the downtrend on Tuesday, this time by around 5.7K contracts. Volume, instead, reversed two consecutive daily pullbacks and went up by around 56.7K contracts.

Gold: A drop to $1,800 should not be ruled out

Gold prices extended the corrective downside and broke below the key 200-day SMA on Tuesday, opening the door to further decline in the very near term. The move, however, was on the back of shrinking open interest and removed some strength from potential extra weakness. Against this, the $1,800 mark is expected to offer decent contention.