Gold Futures: Scope for further correction

Open interest in gold futures markets shrank for the third session in a row on Tuesday, this time by nearly 4K contracts according to preliminary readings from CME Group. Volume followed suit and went down by around 58.3K contracts, reaching the third daily drop in a row.

Gold: Upside remains capped by the $1,800 region

Gold prices attempt to stabilize in the lower end of the weekly range around the $1,770 zone. Tuesday’s small uptick was amidst shrinking open interest and volume, which warns against extra upside in the very near term. That said, occasional bullish attempts remain limited by the $1,800 zone per ounce troy for the time being.