February 4, 2023

A deeper pullback appears unlikely

Traders scaled back their open interest positions in gold futures markets by nearly 2.5K contracts on Monday, considering advanced figures from CME Group. Volume, instead, reversed two consecutive daily retracements and went up by almost 65K contracts.

Gold looks supported around $1,800

Gold prices started the new year well on the defensive. The marked pullback, however, was against the backdrop of shrinking open interest, indicative that a deeper drop is not favoured at least in the very near term. That said, the key $1,800 mark per ounce troy continues to stand at quite a decent support for the time being.

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