Gold Futures: Further upside looks limited

Open interest in gold futures markets extended the downtrend for the fourth consecutive session on Monday, this time by around 4.2K contracts considering flash data from CME Group. In the same line, volume went down for the third session in a row, now by around 105.1K contracts.

Gold remains supported around $1,780

Gold rebounded moderately on Monday following lows near $1,780 at the end of last week. The corrective upside, however, was amidst shrinking open interest and volume, which is indicative that the move higher could lack conviction. In the meantime, bearish attemtps should remain well contained around the $1,780 zone.