Gold Futures: Further correction on the cards

Traders increased their open interest positions by nearly 5.5K contracts on Wednesday according to preliminary data from CME Group. In the same line, volume reversed the previous drop and rose by around 53.5K contracts.

Gold could slip back to $1,718

Following new 2020 peaks near $1,770 per ounce on Wednesday, Gold closed in the negative territory amidst rising open interest and volume. That said, there is room for prices of the precious metal to correct lower to the 55-day SMA, today around $1,718.