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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.