Gold Futures: Further upside looks unconvincing

Open interest in gold futures markets noted traders reversed three daily builds in a row and shrank by nearly 5K contracts on Wednesday, according to advanced prints from CME Group. Volume, instead, increased for the second consecutive session, now by more than 19K contracts.

Gold appears supported around $1,700

Gold prices charted decent gains after bottoming out near the $1,700 mark per ounce troy on Wednesday. The uptick, however, was on the back of shrinking open interest, leaving the prospects for further gains somewhat curtailed for the time being. In the meantime, the $1,700 region continues to hold the downside in the very near term.