Gold Futures: Further correction on the cards

Open interest in gold futures markets extended the erratic performance and shrank by around 1.9K contracts on Tuesday according to advanced prints from CME Group. Volume reversed the previous daily drop and went up by around 19.5K contracts.

Gold remains capped by $1,800

Gold prices briefly tested the $1,800 mark on Tuesday, ending the session with decent gains. The daily uptick, however, was on the back of shrinking open interest, exposing some near-term correction. In the meantime, the $1,800 zone remains as the next target for bulls.