Gold Futures: Downside expected to be shallow

Open interest in Gold futures markets reversed a multi-session uptrend and shrunk by nearly 6.1K contracts on Wednesday, in light of advanced data from CME Group. Volume, instead, rose for the second session in a row, now by around 72.8K contracts.

Gold could re-test the 55-day SMA at $1,725/oz

Prices of the ounce troy of Gold corrected lower after hitting fresh YTD peaks around $1,790 on Wednesday. The correction lower came amidst declining open interest, signalling that a deeper pullback looks unlikely in the short-term horizon. That said, the precious metal could test the $1,725 level before resuming the upside.