XAUUSD: Why Did Gold Collapse So Sharply Yesterday?GoldOANDA:XAUUSDDomicChainaGold’s sharp decline was not driven by technical factors alone. The main catalyst came from the latest Federal Reserve meeting and a significant shift in market expectations regarding future interest rates. Although the Fed left rates unchanged, the updated dot plot revealed that 9 out of 19 FOMC members are now leaning toward another rate hike this year. This reinforced expectations that monetary policy could remain restrictive for longer, sending the US Dollar to its highest level in weeks. As the Dollar strengthened, gold became more expensive for holders of other currencies. At the same time, rising US Treasury yields reduced the appeal of non-yielding assets such as gold. Together, these factors triggered aggressive selling pressure across the precious metals market. Another factor was the temporary agreement between the United States and Iran, which helped ease geopolitical concerns. The resulting decline in oil prices reduced inflation worries and further weakened demand for safe-haven assets. From a technical perspective, gold failed to sustain its recovery near $4,330. After losing momentum, sellers regained control and pushed price back below the $4,200 level, reinforcing the bearish H4 structure. As long as XAUUSD remains below the $4,270–4,330 resistance zone, the broader bias continues to favor sellers. If bearish pressure persists, the next downside target may be found around $4,100, followed by the recent low near $4,050.