Gold Futures: A deeper retracement appears unlikely

Considering advanced figures from CME Group for gold futures markets, open interest shrank for the second session in a row on Tuesday, this time by more than 8K contracts. Volume followed suit and dropped by around 274.5K contracts, reversing at the same time three consecutive daily builds.

Gold continues to target $1960

Tuesday’s downtick in gold prices was on the back of shrinking open interest and volume, hinting at the view that the current decline is unlikely to extend further in the very near term. In the meantime, the recovery in the precious metal keeps the immediate target at the 2023 high at $1960 per ounce troy (February 2).