Gold Futures: Further upside not favoured

Open interest in gold futures markets shrank for the third session in a row on Monday, this time by around 7.4K contracts according to preliminary readings from CME Group. In the same line, volume dropped for the second consecutive day, now by around 15.3K contracts.

Gold appears supported by $1780

Monday’s optimism in gold prices was on the back of shrinking open interest and volume, indicative that the continuation of the recovery appears not favoured in the very near term. In the meantime, the so far 2022 low at $1780 should offer decent contention for the time being.