Gold Futures: Further upside unlikely

Open interest in gold futures markets extended the downtrend for yet another session on Wednesday, this time shrinking by nearly 3K contracts according to advanced figures from CME Group. In the same line, volume dropped by around 8.2K contracts, adding to the recent downside.

Gold capped near $1,810

Gold prices extended the upside for the third session in a row on Wednesday. The move, however, was fuelled by short covering as noted by the backdrop of declining open interest and volume. That said, gains appear limited around the $1,810 area for the time being.