Gold Futures: Upside could take a breather

Open interest in gold futures markets shrank by just 29 contracts on Tuesday, partially offsetting the previous daily build according to preliminary readings from CME Group. In the same line, volume resumed the downside and went down by around 10.8K contracts.

Gold looks capped by $1,735

Gold prices rose for the sixth consecutive session on Tuesday and surpassed the key $1,700 mark at the same time. The strong uptick, however, came on the back of declining open interest, which hints at the likelihood that the acute rebound could take a breather in the very near term. In the meantime, the next hurdle comes at the September high at $1,735 per ounce troy (September 12).