Gold Futures: A corrective move is not ruled out

Open interest in gold futures markets shrank for the first time since July 2 on Thursday, this time by around 3.5K contracts considering preliminary readings from CME Group. In the same line, volume dropped for the second session in a row, now by around 76.3K contracts.

Gold now targets $1,860

Gold prices charted an inconclusive session on Thursday despite closing it with small gains. The move was accompanied by shrinking open interest and volume, which is indicative that a corrective move could be shaping up in the very near term. In the meantime, the Fibo level (of the March-June rally) at $1,860 per ounce troy now emerges as the next target of note for the yellow metal.