Gold Futures: Look cautious ahead of Jackson Hole

Open interest in gold futures markets reversed the uptrend in place since August 13 and dropped by around 5.7K contracts on Wednesday, considering preliminary readings from CME Group. Volume, instead, extended the choppy activity and rose by around 51.5K contracts.

Gold faces some consolidation

Wednesday’s negative price action in gold was in tandem with shrinking open interest, leaving the probability of a deeper pullback somewhat curtailed. In the meantime, the 200-day SMA just above the $1,800 mark continues to cap occasional bullish attempts, while the Fibo level (of the March-June rally) near $1,770 acts as an interim support.