Treads Water Ahead Of US Retail Sales Today

Gold has shown slight strength (+0.25%) during the Asia-Pac session, having closed steady for the second consecutive day on Monday. Investors are carefully evaluating the impact of China's slow economic recovery on global growth, while also considering signs that the Federal Reserve is nearing the end of its monetary-tightening cycle. The US dollar and US Treasuries were tame ahead of the release of US retail sales data today.

• US Treasury Secretary Janet Yellen expressed concern about the repercussions of the sluggish Chinese economy, but she reassured that she doesn't foresee a recession in the US, where the inflation threat is diminishing. This has sparked optimism that the Fed might soon pause its rate hikes, which typically have a negative effect on gold due to its lack of interest-bearing nature.
• According to MNI's technicals team, gold remains reasonably close to resistance at $1968.0 (Jun 16 high) with an intraday high nudging $1960, whilst support is seen at $1934.4 (20-day EMA).