CME Group’s flash data for gold futures markets noted traders scaled back their open interest positions for the fourth consecutive session on Wednesday, now by nearly 2K contracts. Volume followed suit and shrank by nearly 48K contracts after two daily builds in a row.

Gold meets contention around the 200-day SMA

Gold prices dropped for the third straight session on Wednesday amidst shrinking open interest and volume, hinting at the likelihood that a deeper pullback is not favoured in the very near term. In the meantime, the 200-day SMA around $1917 emerges as a decent contention for the time being.