Gold Futures: Upside seen limited

Considering preliminary readings from CME Group for gold futures markets, open interest shrank by around 2.9K contracts on Thursday, resuming the downside following the previous daily build. On the other hand, volume extended the erratic performance and went up by around 79.7K contracts.

Gold appears supported around $1,720

Thursday’s strong advance in gold prices was amidst shrinking open interest, which suggest that extra gains appear somewhat contained in the very near term. That said, the yellow metal still looks supported around $1,720 per ounce troy for the time being.