Gold Futures: Further upside in the pipeline

Open interest in gold futures markets shrank for yet another session on Thursday, this time by around 2.5K contracts according to preliminary readings from CME Group. In the same line, volume dropped by around 66.2K contracts after three consecutive daily pullbacks.

Gold remains supported around $1,840

Prices of the ounce troy of bullion shed ground for the second straight session on Thursday. The move was accompanied by shrinking open interest and volume, which is indicative that a deeper pullback appears out of favour for the time being. So far, gold prices appear contained by the 200-day SMA around $1,840.