Gold Futures: Further gains look capped

Open interest in gold futures markets remained erratic on Friday and dropped by nearly 7K contracts, according to preliminary readings from CME Group. On the other hand, volume reversed two daily drops in a row and increased by around 13.3K contracts.

Gold looks to retest $1,800

Prices of the ounce troy of gold faltered just below the key $1,800 mark in past sessions. Friday’s downtick was on the back of shrinking open interest, suggesting further downside could be limited and always with the immediate target at the $1,800 mark.