At $1207.8, gold prices remain under...........>

GOLD: At $1207.8, gold prices remain under pressure and are edging down to the

lower end of the recent trading range with key support at $1205.9 within

touching distance. 

- The 21-DMA, currently at $1220.2, marks a line in the sand, with recent rally

attempts failing to overcome this level. 

- Gold's large declines have been in line with the rise in US real yields, but

the latter appear to be showing some signs of peaking which should be positive

for the yellow metal. That said, the ongoing weakness in the commodity complex

generally is a headwind to the metal.

- The failure of the rise in EM instability to benefit gold prices is also

bearish, and the outlook remains negative for now.