Gold Futures: Correction in the offing?

Open interest in gold futures markets shrank for the second session in a row on Monday, this time by more than 4K contracts according to advanced prints from CME Group. In the same line, volume dropped for the third consecutive session, now by around 10.5K contracts.

Gold looks capped by $1,780

Monday’s uptick in gold prices was amidst shrinking open interest and volume, which is indicative that a probable corrective downside could be shaping up in the very near term. So far, price action in the yellow metal looks limited by the $1,780 mark per ounce troy.