Gold Futures: Advances appear limited
Traders reduced their open interest positions in Gold futures markets for yet another session on Wednesday, now by 744 contracts according to flash data from CME Group. It is worth noting that this was the ninth drop in a row. In addition, volume followed suit and shrunk by around 37.7K contracts.
Gold looks cautious around $1,550/oz
The ounce troy of the yellow metal seems to have met solid contention around $1,550 for the time being. Shrinking open interest and volume warn against the continuation of the bullish move and open the door to a probable correction lower. This view should be reinforced by the prevailing risk-on sentiment in the global markets.