Gold prices fell on Wednesday, giving back early gains. The precious metal initially attempted to rally but struggled to break higher.
A pullback makes sense after recent strong market action. Falling interest rates in the United States could eventually support gold prices.
Traders are watching the $4,600 level as a major floor. Staying above this level could keep the market positive. A break higher could target $5,000, which also acts as a resistance level.
US interest rates hover around 4.30%. Rates below this point tend to drive gold higher. A move above 4.30% could push prices lower.
Tensions in the Middle East and related news headlines influence the market. One analyst advises buying short-term pullbacks for trades.