Gold Futures: Further decline in the pipeline

CME Group’s flash data for gold futures markets noted open interest dropped for the second session in a row on Wednesday, this time by around 2.8K contracts. Volume followed suit and resumed the downtrend, now by around 40.3K contracts.

Gold remains capped by $2000

Wednesday’s decent gains in gold prices, however, was on the back of shrinking open interest and volume, indicative of short covering behind the move. That said, further gains appear not favoured while the upside remains limited by recent peaks in the $2000 area per ounce troy.