Gold Futures: Further upside appears not favoured

Open interest in gold futures markets shrank by just 495 contracts at the beginning of the week after three consecutive daily builds, according to preliminary readings from CME Group. Volume followed suit and dropped by more than 48K contracts following the previous daily build.

Gold: Next target emerges at $1900

Gold prices started the week with a strong advance. The uptick, however, was midst shrinking open interest and volume, and is indicative that the continuation of the recovery seems not favoured in the very near term. On the upside, the immediate resistance emerges around the key $1900 region per troy ounce.