Yesterday, gold prices were weighed down by position adjustments ahead of the FOMC meeting. The market is already expecting a 0.25% rate cut at the meeting held in the early hours tomorrow. Focus will be on next year’s interest rate outlook, the terminal rate, and comments from Chairman Powell.
For next year, many expect a reduction in rate cuts from the previous forecast of four cuts to three or even two, which could suggest a more hawkish stance. If this happens, interest rates may rise, leading to further selling of gold.
If gold prices clearly drop below the neckline of the double top formation, around 2600, there is little support until the 2560 area. However, due to ongoing geopolitical risks, the downside is expected to be limited, and a neckline break may be avoided.
Gold/Dollar Expected Range: 2670 – 2608
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