Gold Futures: Further upside in store near term

Open interest in gold futures markets shrank by nearly 10K contracts on Friday, reversing at the same time five consecutive daily builds. Volume followed suit and went down by around 3.2K contracts, extending the current choppy activity.

Gold looks poised to extend gains

Friday’s marked pullback in gold prices was on the back of shrinking open interest and volume, leaving no room for the continuation of the decline in the very near term. That said, the precious metal continues to target the 2023 high at $2067 per ounce troy (May 4), just ahead of the all-time peak at $2075 (August 7 2020).