Gold Futures: Further downside on the cards

Open interest in gold futures markets rose by nearly 1.7K contracts on Wednesday according to advanced figures from CME Group. Volume, in the same line, reversed three consecutive daily drops and increased by around 26.4K contracts.

Gold meets resistance near $1,850

Gold prices briefly tested the 200-day SMA beyond $1,850 on Wednesday, just to give away part of those gains and close the session around $1,840 per ounce troy afterwards. The move was on the back of rising open interest and volume and is indicative that further decline could lie ahead in the very near-term.