Gold Futures: Recovery looks limited

Open interest in gold futures markets shrank by around 3.7K contracts on Friday, reaching the second session in a row considering flash data from CME Group. In the same line, volume reversed the previous build and went down by around 106.7K contracts.

Gold stays supported around $1,720

Gold prices extended the bounce off monthly lows on Friday, posting decent gains at the beginning of the month. The move, however, was amidst shrinking open interest and volume, hinting at the probability that further upside appears contained in the very near term. In the meantime, the $1,720 region continues to support the yellow metal for the time being.