Gold Futures: Further gains seem unlikely

Open interest in gold futures markets shrank for the second session in a row on Tuesday, this time by just 281 contracts according to preliminary readings from CME Group. Volume followed suit and went down by around 5.4K contracts and partially reversed the previous daily build.

Gold remains capped by the 200-day SMA

Gold prices added to gains seen at the beginning of the week amidst shrinking open interest and volume on Tuesday. Against that the continuation of the uptrend appears not favoured in the very near term while the key 200-day SMA, today at $1908, continues to limit occasional bullish attempts.