Gold Futures: A sustained decline appears unlikely

Open interest in gold futures markets shrank by around 9.5K contracts after three consecutive daily builds on Friday according to preliminary readings from CME Group. Volume, instead, extended the upside for the fourth consecutive session, this time by more than 35K contracts.

Gold retargets the 2023 high near $2050

Friday’s sharp pullback in gold prices was on the back of declining open interest, which is suggestive that a deeper retracement seems out of favour for the time being. Against that, the resumption of the uptrend should retarget the YTD top at $2048 per ounce troy (April 13).