Open interest in gold futures markets left behind four consecutive daily drops and rose by around 6.3K contracts on Wednesday according to preliminary readings from CME Group. Volume followed suit and increased for the second day in a row, now by around 14.4K contracts.

Gold: Overbought condition prompts some caution

Gold prices tested the $1950 region per ounce troy on Wednesday on the back of rising open interest and volume, suggesting that extra upside remains well in store for the time being. However, the precious metal entered the overbought territory, therefore a potential corrective move could also be in line. Next on the upside in the medium term still emerges the key $2000 mark.