CME Group’s flash data for gold futures markets noted traders reduced their open interest positions by nearly 8K contracts on Wednesday. Volume, instead, reversed two daily pullbacks in a row and went up by around 40.8K contracts.

Gold: Next on the upside comes the 2023 high

Gold prices remain side-lined so far this week. Wednesday’s downtick, however, was on the back of shrinking open interest and is suggestive that a deeper drop is not favoured in the very near term. That said, occasional bouts of strength are still seen targeting the YTD peak near $2050 per ounce troy (April 13).