Gold Futures: Further upside in store near term

Open interest in gold futures markets dropped for yet another session on Monday, this time by nearly 4K contracts according to preliminary readings from CME Group. Volume, instead, remained erratic and went up by around 68.6K contracst.

Gold keeps targeting $1,786

Gold started the week on the defensive, although the daily pullback was amidst shrinking open interest. That said, further downside appears unlikely in the very near term, allowing instead for a potential rebound. The next target remains at he November high at $1,786 per ounce troy (November 15).