Open interest in gold futures markets dropped by nearly 8.7K contracts after two consecutive daily builds on Thursday, according to preliminary readings from CME Group. Volume followed suit and shrank for the third straight session, now by almost 65K contracts.

Gold: Next on the upside comes $2070

Thursday’s knee-jerk in gold prices was on the back of shrinking open interest and volume, hinting at the idea that further losses appear not favoured in the very near term and leaving the door open to the continuation of the ongoing uptrend. That said, the next target on the upside emerges at the 2023 top of $2067 per troy ounce (May 4).