CME Group’s flash data for gold futures markets noted traders trimmed their open interest positions by around 1.2K contracts on Monday, extending further the downward trend. Volume followed suit and shrank by around 29.4K contracts, partially fading the previous daily build.

Gold: Upside remains capped around $1980

Gold started the week in a positive fashion and with decent gains. The uptick, however, was accompanied by shrinking open interest and volume and hints at the idea that a more sustainable advance seems out of favour for the time being. In the meantime, occasional bouts of strength should meet initial resistance around $1980 per ounce troy.