Gold recently experienced a modest recovery after hitting its lowest point this year, but it remains capped below the $4,100 level. The underlying weakness in the US Dollar has offered some support, making gold more attractive to investors seeking a safe haven.

However, optimism is tempered by ongoing speculation that the Federal Reserve will continue to raise interest rates, which tends to increase opportunity costs for holding non-yielding assets like gold. Traders should monitor USD movements closely, as well as Fed communications, as these will likely dictate near-term price action.

A break above $4,100 could signal a stronger rally, while failure to hold current levels may lead to further downside.