Open interest in gold futures markets shrunk marginally by 13 contracts on Tuesday, reaching the third consecutive session according to flash data from CME Group. In the same line, volume went down by around 30.1K contracts, also extending the recent downtrend.
Gold stays capped by the 200-day SMA near $1,850
Gold prices extended the rally for yet another session on Tuesday. The uptick, however, was in tandem with shrinking open interest and volume, noting the presence of short covering behind the recent upside and allowing for a correction lower in the very near-term. Against that, the 200-day SMA in the $1,850 region still caps the uptrend.
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