Gold Futures: Corrective downside in the offing

Open interest in gold futures markets shrank for yet another session on Tuesday, this time by nearly 10K contracts according to preliminary readings from CME Group. On the other hand, volume increased for the second session in a row, now by almost 27K contracts.

Gold could now retest the 200-day SMA

Prices of the ounce troy of gold printed new multi-day highs around $1,870 on Tuesday amidst diminishing open interest. That said, further upside now looks out of favour and could spark a corrective move to, initially, the 200-day SMA, today at $1,839.