Gold Futures: Downside appears limited

Traders reduced their open interest positions by just 486 contracts at the beginning of the week according to flash data from CME Group. Volume, too, shrunk by 80.7K contracts, extending the erratic performance seen as of late.

Gold remains capped by the $1,940 region

Gold’s negative performance on Monday was on the back of diminishing open interest, hinting at the idea that further retracement is not ruled out although it should remain somewhat contained in the very near-term.