According to flash data for gold futures markets from CME Group, open interest rose by more than 5K contracts on Wednesday after two consecutive daily drops. On the other hand, volume extended the downtrend and shrunk by around 15.6K contracts.

GOLD NOW LOOKS TO $1,850/OZ

Prices of the ounce troy of gold edged higher on Wednesday, extending the bounce off monthly lows near $1,760 (November 30) amidst increasing open interest. That said, the yellow metal now targets the mid-$1,800s, or September’s lows. This area is reinforced by the proximity of the 21-day SMA ($1,854).