Considering preliminary readings from CME Group for gold futures markets, open interest extended the downtrend and shrank by around 2.4K contracts on Thursday. Volume, instead, rose for the second session in a row, this time by around 25.5K contracts.

Gold capped by $1850

Thursday’s strong gains in gold prices was on the back of shrinking open interest, hinting at the idea that further rebound appears not favoured in the very near term at least. That said, the $1850 area per ounce troy emerges as the initial hurdle for the time being.