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Gold continues to show no signs of support.....>

GOLD
GOLD: Gold continues to show no signs of support even amid the fall in US real
bond yields. The metal hit a new low of 1,250.70 and its bounce off the lows has
been unconvincing. The trend remains firmly for further downside and it would
likely take a significant reversal in US monpol to prevent further weakness
given that gold remains overvalued based on historical correlations with real
yields.  
- Adding to the headwinds is the renewed weakness in silver prices, which also
hit a new ytd low last night. Gold remains overvalued relative to US real
yields, silver, and the broader commodity complex, even despite recent oil price
gains, suggesting further downside is likely. 

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