Gold Futures: Corrective downside on the cards

Open interest in Gold futures markets shrunk for the third session in a row on Wednesday, this time by around 2.4K contracts. Volume followed suit and went down by nearly 148K contracts.

Gold still targets $2,000/oz

Gold prices briefly tested levels beyond the $1,900 mark on Wednesday before ending the session with small losses. The move was accompanied by shrinking open interest and volume, allowing for some corrective leg lower in the very near-term. This view is also supported by the current overbought condition of the precious metal (as per the daily RSI).