The yellow metal has edged lower, currently....>

GOLD: The yellow metal has edged lower, currently at 1,268, but remains above

its Thursday low. Today's weakness has come in spite of a slight shift lower in

US real yields across the curve as nominal yields edged lower due US threats of

restricting Chinese investments in the country. 

- However, the metal's recent weakness is likely a delayed reaction to the gap

that has opened up between it and the fair value level implied by US real

yields, which had reached extremes back in April. After a 7% drop since then,

and with US real yields also edging lower, the fundamental picture has improved,

but the technical picture has deteriorated following the break of trendline

support on June 19. The path of least resistance is likely lower, with the next

level is support coming in at the December 2017 low of 1,240.