Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focus
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Gold ticks up on Monday following a nearly 3% sell-off last week.
The Precious metal is drawing support from an ailing US Dollar.
XAU/USD is on a bearish trend, with resistance at $3,300 and the $3,335-$3,350 area.
Gold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week. The Precious metal is drawing some support from the US Dollar's weakness, but a previous support at the $3,300 level is limiting upside attempts for now.
The peace agreement between Israel and Iran crushed demand for safe-haven assets like Gold last week, while this week, the progress on the tariff negotiations between the US and some of its main partners is supporting a mild risk appetite.
Technical analysis: XAU/USD is on a bullish correction
Monday’s recovery seems like a bullish correction, which is likely to have a limited scope unless the fundamental backdrop changes radically. The Relative Strength Index (RSI, 14) in 4-hour charts remains below 50, highlighting the bearish momentum.
The mentioned resistance at $3.300 area (June 24 low) is capping upside attempts for now, ahead if the descending channel top, now around $3,335. The precious metal should return above $3,350 (June 26 low) to confirm a trend shift.
A rejection from current levels would bring the June 29 and May 29 lows, as well as the bottom of the mentioned channel, which are converging at $3,250, back to the table. Below here, the next target is the May 20 low, at 3,205.
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
