Open interest in gold futures markets dropped for yet another session on Wednesday, this time by around 4.1K contracts, according to advanced prints from CME Group. Volume, instead, reversed the previous daily drop and went up by around 50.6K contracts.
Prices of the ounce troy of gold increased massively on Wednesday. The uptick, however, was on the back of shrinking open interest, implying that the upside momentum could be running out of steam soon. On the upside, the next relevance target is seen at the $1,800 region, an area reinforced by the proximity of the 200-day SMA, today at $1,796.