Gold prices quickly rose to a level of $4,237 an ounce as safe-haven inflows increased due to political tensions and expectations of continued interest rate cuts by the Federal Reserve. But this rise did not last long as profit-taking caused the price to drop to the 4207 area over $30.

Improving risk appetite in global markets clearly played a role. U.S. stocks recovered, the Nasdaq rose on strength in technology stocks, and Japanese markets stabilized, reducing demand for defensive assets. The U.S. dollar index rose to 99 levels, reinforcing the negative pressure on gold.

Technically, initial support has formed between the FVG range of 4180 and 4190, but the price remains below the higher resistance area and is close to the intersection of the Kijun and Senko lines on the Ichimoku indicator, an area that often attracts sellers. Therefore, the current move looks more like a test of the supply zone than a clear upward trajectory.

A break above the 4235-4245 levels could push gold towards 4260-4285, while a fresh rejection could take the price back to 4190 for more liquidity.

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