Gold Futures: Upside remains capped

FX

Traders reduced their open interest position in gold futures markets by just 597 contracts on Friday, in light of flash data from CME Group. In the same line, volume extended the downtrend for yet another session and shrunk by nearly 7K contracts.

Gold stays limited by $1,850/oz

Friday’s inconclusive price action in gold was amidst shrinking open interest and volume, opening the door to the continuation of this theme and even a potential correction lower. In the meantime, the $1,850 mark per ounce still emerges as a tough barrier for bulls in the short-term.

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