The XAU/USD chart shows that yesterday, the price of gold fell below $2610, a level not seen since 20th September.

Bearish sentiment has been driven by the continued strengthening of the US dollar. According to Trading Economics:

→ This is due to market participants lowering expectations for an aggressive rate cut by the Federal Reserve.
→ Currently, there is an 89% probability that the Fed will decide on a 25 basis point rate cut in November.

The technical analysis of the XAU/USD chart indicates that gold is still within the upward channel (shown in blue), which began in August 2024. However:

→ The gold price has broken below the median line of the blue channel.
→ The price decline from the historic peak reached on 26th September is forming a descending channel (shown in red), which can be considered a correction within the broader upward trend.
→ The $2670 level is showing signs of resistance, while the psychological level of $2600 could act as support, as seen during the bullish breakout in mid-September.

It is possible that bulls will attempt to resume the upward trend, using the area (marked by an orange circle) created by the following support levels:

→ The lower boundary of the blue channel.
→ The red channel line.
→ The psychological level of $2600.

Be prepared for potential volatility spikes. The FOMC meeting minutes will be released today at 21:00 GMT+3, which could trigger sharp movements in the gold price.

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