Gold Futures: A deeper drop seems unlikely

Open interest in gold futures markets resumed the downside and shrank by nearly 3K contracts on Wednesday according to advanced figures from CME Group. Volume, instead, remained choppy and this time went up by around 7.6K contracts.

Gold: Extra gains seen above $1950

Gold prices retreated moderately on Wednesday amidst shrinking open interest, which should leave the prospect for a deeper correction somewhat curtailed in the very near term. In the meantime, the precious metal should clear the recent tops at $1950 (March 1) to allow for further gains to, initially, the YTD peak at $1974 (February 24).