BENGALURU, July 16 (Reuters): Gold prices held steady on Tuesday as investors awaited retail sales data from the United States later in the session for cues on the health of the world's largest economy.
Spot gold inched up 0.1 per cent to $1,414.92 per ounce by 1015 GMT. US gold futures rose 0.2 per cent to $1,416.60.
"Gold fell over the last three weeks and has been in a consolidation phase," OANDA senior market analyst Craig Erlam said, adding US retail sales data would offer an important economic pointer.
"After the US jobs report earlier we've seen a return to big-news-is-bad-news scenario whereby a strong piece of data, which could discourage the Fed from cutting interest rates, is having big implications on the market," he said.
The data is due before major central bank decisions. The European Central Bank issues a rate decision on July 25, while the US Federal Reserve is expected to cut rates shortly after that.
"Gold has not broken $1,400 and the fact that it is holding on to these (levels) suggests there is some substance to the move," Erlam said.
In the ongoing US-Chinese trade row, US President Donald Trump said slowing economic growth in the world's second largest economy showed US tariffs were having "a major effect" and Washington could add pressure.
Chinese data released on Monday showed growth slowed to 6.2 per cent in the second quarter, its weakest pace in at least 27 years, raising expectations that Beijing will roll out more support measures in coming months.
US Treasury Secretary Steven Mnuchin said he and US Trade Representative Robert Lighthizer would hold further trade talks with their Chinese counterparts by phone this week, part of efforts to end the spat that has weighed on markets.
Spot gold was holding in a narrow range of $1,404-$1,421, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
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