Gold Futures: Probable correction in the offing

Open interest in gold futures markets resumed the downside and shrank by around 3.2K contracts on Thursday, according to preliminary readings from CME Group. In the same line, volume dropped by around 90.3K contracts, offsetting the previous day’s build.

Gold: Upside looks capped by $1,688

Thursday’s small uptick in prices of the ounce troy of gold was accompanied by shrinking open interest and volume, opening the door to some corrective move in the very near term. In the meantime, the weekly high at $1,688 (September 21) continue to cap the upside for the time being.