Higher In Asia

Gold sits $6/oz better off, printing $1,767/oz at typing. The precious metal has rebounded from its early Fedspeak-induced lows, rising above neutral levels after the Australia Q2 retail sales print, with a downtick in nominal U.S. Tsy yields aiding the move higher.

• To recap Tuesday’s price action, gold retreated from 4-week highs to close ~$12/oz lower, snapping a four-day streak of gains. The decline tracked a similar move in the USD, with the DXY closing higher on the day after its own four-session streak of losses.
• Gold’s move away from Tuesday’s highs also comes as headlines surrounding U.S. House Speaker Pelosi’s visit to Taiwan remains focused on a widening suite of Chinese trade and business embargoes on Taiwan, with little sign of military escalation from the Chinese observed at present despite the swathe of conflict-tinged warnings prior to Pelosi landing in the country.
• Headline risks from Pelosi’s visit will remain in focus throughout the day as she meets with Taiwanese leaders, although both the White House and her have recently reiterated that the trip does not represent a change in long-standing U.S. policy towards the island.
• From a technical perspective, gold’s recent bounce is still seen as corrective, with focus on initial resistance at ~$1,784.8/oz (50-Day EMA), a break of which would expose further resistance at $1,809.5/oz (trendline resistance). On the other hand, support is seen at ~$1,747.7/oz (20-Day EMA).