Gold Futures: A deeper pullback looks unlikely

CME Group’s flash data for gold futures markets noted open interest shrank by more than 4K contracts on Tuesday, reversing the previous daily build. Volume, instead, went up by nearly 50K contracts after four consecutive daily retracements.

Gold remains capped by $2000

Wednesday’s moderate drop in gold prices was on the back of shrinking open interest, indicative that further downside is not favoured in the very near term. On the upside, prices of the yellow metal remain limited by the $2000 mark per ounce troy so far.