Gold prices have fallen nearly 20% from their early-year highs. Can the 4,500 level hold?

As of today, May 22, spot gold is fluctuating between $4,520 and $4,540 per ounce, compared to the high of $5,589-$5,602 on January 28, a drop of nearly 20%.

A strengthening dollar, rising U.S. Treasury yields, some progress in U.S.-Iran negotiations, and oil prices stirring inflation expectations are all weighing on gold prices.

On the technical side, $4,500 is a testing level; if broken, support may be found around $4,400. Looking longer-term, JPMorgan's year-end target remains at $5,000, while Goldman Sachs is more aggressive, calling for $5,400.

Institutions generally see this as a normal correction within a bull market, not a reversal. Central banks are still buying, ETFs are still flowing in, and global issues haven't settled down.

For those with traditional portfolios, gold's safe-haven properties haven't changed. The decline might even be a good entry point; historically, after such a correction, prices often rebound. Focus on the $4,500-$4,400 range, gradually build positions based on the dollar and Federal Reserve movements, and avoid leverage chasing gains or panic selling.