Gold Futures: Room for extra upside

Open interest in gold futures markets shrank for the second session in a row on Wednesday, this time by around 2.7K contracts according to advanced prints from CME Group. Volume followed suit and also dropped for the second consecutive day, now by almost 30K contracts.

Gold continues to target $1,735

Wednesday’s knee-jerk in gold prices was on the back of shrinking open interest and volume, hinting at the likeliness that extra decline looks out of favour for the time being. That said, the continuation of the uptrend appears on the cards and with the next target at the September high at $1,735 per ounce troy.