CME Group’s flash data for gold futures markets noted traders scaled back their open interest positions by around 10.5K contracts on Tuesday, reversing the previous daily build. Volume followed suit and went down by nearly 2K contracts.

Gold: Upside appears capped by $1990

Tuesday’s uptick in gold prices was accompanied by shrinking open interest and volume, which removes strength from further bullish attempts in the very near term. In the meantime, the July high around $1987 per troy ounce (July 20) continues to cap the upside for the time being.