CME Group’s flash data for gold futures markets noted open interest shrank for the fourth consecutive session on Tuesday, this time by around 16.2K contracts. Volume, on the other hand, went up by around 1.4K contracts after two daily drops in a row.

Gold faces extra consolidation very near term

Gold prices extended its weekly correction on Tuesday, although the downtick was on the back of shrinking open interest. That said, while extra losses appear somewhat not favoured in the very near term, much of the short-term direction hinges on the Fed’s decision on rates later on Wednesday. So far, the $1,680 area is expected to hold the downside for the time being.