Gold Futures: Upside remains well in place

Traders trimmed their open interest positions for the first time after four consecutive daily builds, this time by just 429 contracts at the beginning of the week according to preliminary figures from CME Group. Volume, instead, reversed two drops in a row and went up by around 76.3K contracts.

Gold could now test $1,800/oz

The ounce troy of the precious metal advanced above $1,760 for the first time since October 2012 on Monday. Despite ending the session in the red territory, shrinking open interest hints at the idea that pullbacks are seen shallow. That said, gold could edge higher with the next target at October 2012 high just below the $1,800 mark per ounce in the short-term horizon.

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