Gold Futures: Recovery could falter near term

CME Group’s flash data for gold futures markets noted open interest shrank by around 9.1K contracts on Thursday, reversing the previous daily build. Volume, instead, rose by around 9.3K contracts, partially eroding Wednesday’s sharp drop.

Gold remains capped near $1970

Thursday’s uptick in gold prices briefly tested the $1950 level amidst shrinking open interest, indicative that extra gains appear somewhat out of favour in the very near term. That said, occasional bullish attempts in the precious metal look so far limited around recent weekly peaks around the $1970 per ounce troy.