XAUUSD - Gold is nearing the end of its downtrend!?Gold / U.S. DollarFOREXCOM:XAUUSDAli_PSNDGold is trading below the EMA200 and EMA50 on the 4-hour timeframe and is in the decision-making range. If the marked downtrend line is broken, we expect gold to move up to the ceiling of the descending channel. If the current marked support is lost, the path to the decline to $3,900 will be smooth. The gold market has experienced one of its sharpest sell-offs in recent years, with prices falling back to their lowest level of the year. Gold has now recorded its fourth consecutive monthly decline, reaching its weakest price since early November of last year. Market data indicate that the metal’s approximately 12.8% decline this month represents its worst monthly performance since the 2008 global financial crisis. The primary drivers behind this downward pressure have been the strength of the U.S. dollar and the Federal Reserve’s hawkish stance. The central bank’s firm tone during its latest policy meeting has reinforced market expectations that at least one more interest rate hike will take place before the end of the year. Since gold is a non-yielding asset, higher interest rates increase the opportunity cost of holding it, encouraging investors to shift their capital toward income-generating assets. As a result, the appreciation of the U.S. dollar and growing expectations of tighter monetary policy have placed significant downward pressure on gold prices, substantially weakening the metal’s overall momentum.