Gold prices continued to adjust in the afternoon European session:

During the session, it once fell below the $4300 threshold, currently trading around $4286/ounce, with an intraday decline of about 0.5%. This round of weakness is mainly influenced by short-term futures traders taking profits and some long positions being liquidated. At the same time, the market's positive expectations for the easing situation in Ukraine have also somewhat weakened the safe-haven appeal of gold, leading to a reduction in short-term demand.

Although gold prices are under short-term pressure, further downside space is expected to be limited. Last week, the Federal Reserve completed its third interest rate cut of the year and signaled that there is still room for rate cuts in 2026. The ongoing low interest rate environment provides a cost advantage for holding gold, supporting gold prices in the medium to long term. However, if the geopolitical situation continues to show a trend of easing, it may continue to suppress market risk aversion, thereby limiting upward momentum in gold prices.

From a technical perspective, after a surge and pullback yesterday, gold has broken below the support near $4313. Although it rebounded from the $4300 level in the early session today, it failed to effectively stabilize above $4304, and then quickly retreated before noon, further confirming the short-term weakening trend. Although prices have rebounded from around $4280, the volume during the rebound was insufficient, and sustainability remains to be observed.

The 4-hour chart shows that the MA20 moving average (currently around $4292) has turned from previous support to current resistance. The MACD indicator has shown signs of turning downward above the zero line, entering a correction phase, and the RSI indicator has also fallen below the neutral line, entering a weak zone. Overall, the possibility of gold prices continuing to oscillate downwards during the day is high; if it weakens further, the key support below can be focused on the $4250 level.

In terms of operation, one can consider placing long positions around $4266–$4275, with a stop loss at $4250 and a target of $4300–$4330!