Open interest in gold futures shrank by around 1.2K contracts on Tuesday, reversing at the same time several daily builds, according to preliminary readings from CME Group. Volume followed suit and dropped by around 30.4K contracts, resuming the downside following the previous daily build.

Gold: Gains remain capped by $1980

Gold prices resumed the uptrend and challenged the $1930 region per troy ounce on Tuesday. The uptick, however, was accompanied by shrinking open interest and volume and removes strength from the continuation of the upside in the very near term. So far, occasional bullish attempts are expected to meet a solid resistance around the $1980 area, or June highs.