[XAU/USD] Breaking the Neckline

In the closely watched FOMC meeting, the expected 0.25% rate cut was decided. However, the interest rate outlook for 2025 was revised, reducing the number of expected rate cuts from four to two. Additionally, Chairman Powell’s comments had a aggressive tone, causing U.S. long-term interest rates to rise to the 4.5% range. This led to a sharp drop in gold prices.

Gold broke below the neckline of the double top pattern around 2,610 and fell further to 2,585. With selling pressure on gold still strong, the next potential downside target is near the 2,540 level, which was the low recorded on November 14.