Gold Futures: Upside overdone?

Open interest in gold futures markets shrank by around 18.8K contracts on Friday according to preliminary readings from CME Group. Volume followed suit and dropped for the second session in a row, this time by around 98.2K contracts.

Gold appears capped around $1,770

Gold prices advanced for the third consecutive session at the end of last week. The positive price action, however, came in line with shrinking open interest and volume, suggesting that further gains look not favoured in the very near term at least. So far, the recent rebound met resistance in the $1,770 per ounce troy.