Gold Futures: Upside appears limited near term

Open interest in gold futures markets remained choppy for another session on Wednesday and shrank by around 1.6K contracts considering advanced prints from CME Group. Volume followed suit and dropped by around 31.5K contracts, offsetting the previous daily build.

Gold: Another test of $1,680 is not ruled out

Gold prices posted decent gains on Wednesday and closed once again above the $1,700 mark. The uptick, however, was on the back of shrinking open interest and volume, leaving the potential upside somewhat limited in the very near term. On the downside, the big magnet for gold bears emerges at the 2022 low around $1,680 per ounce troy (July 21).