Gold Futures: Extra gains lack conviction

Traders reduced their open interest positions for the second session in a row on Tuesday, this time by around 8.2K contracts according to flash readings from CME Group. Volume, in the same line, shrunk by around 283.1K contracts, extending the erratic performance.

Gold: A deeper correction is not ruled out

Tuesday’s positive performance in Gold prices was on the back of diminishing open interest and volume, leaving the continuation of the upside momentum undermined. That said, another test of Monday’s lows near $1,850 per ounce is not ruled out in the very near-term.