Gold Futures: Further gains not favoured

Open interest in Gold futures markets rose for the second session in a row on Tuesday, this time by around 10.4K contracts, the largest single day drop since May 11 as per flash data from CME Group. Volume, instead, went up by around 260.8K contracts, the largest build since January 8.

Gold now looks to $2,000

Gold prices extended the rally and briefly tested the key $1,900 mark on Tuesday for the first time since early January. Tuesday’s gains were on the back of shrinking open interest, however, opening the door to some correction in the very near-term. The current overbought conditions also support this view. On the upside, the next key hurdle comes in at the $2,000 mark per ounce troy.