Gold Futures: Correction on the cards

In light of preliminary data for Gold futures markets from CME Group, traders trimmed their open interest positions by around 1.8K contracts on Tuesday, reversing two consecutive daily builds. In addition, volume prolonged the choppy activity and this time rose by around 82K contracts.

Gold recedes from YTD highs near $1,730/oz

Prices of the ounce troy of gold clinched levels not seen since November 2012 near $1,730 on Tuesday. However, the downtick in open interest warns against extra gains in the very near term and could open the door to some correction.