Gold Price Forecast: XAU/USD fails at $3,440 and approaches $3,400 support

• Gold prices decline amid lower demand for safe-haven assets.
• Ebbing concerns about escalating tensions in the Middle East have brought risk appetite back to the market.
• XAU/USD maintains its bullish trend intact while above $3,400.

Gold (XAU/USD) is correcting lower after rejection at the $3,440 resistance area on Friday. The pair maintains the upside structure in place, but easing fears that the Iran-Israel conflict might escalate into a regional war have undermined demand for safe havens, like Gold, in favour of riskier-perceived assets.

The war between Israel and Iran entered its fourth day with no signs of an end in sight. The worst fears, however, have not crystallized, the conflict remains limited, and US interests have not been targeted. This led to a risk rally on Monday, retracing most of Friday's moves, and pushing Gold prices lower.

Technical analysis: XAU/USD focus has shifted to the $3,400 support

The pair is on a corrective reversal from a key resistance level at $3,440, where the top of the ascending wedge channel from mid-May lows meets the May 6 high. This is a potentially bearish figure, but technical indicators are still in positive territory.
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The precious metal is now in a bearish correction from the mentioned $3,440, aiming to a key support level at $3,400 (June 5 high).  A bearish continuation below here would bring the wedge bottom into focus, now at $3,350 and June 11 lows at $3,340.

On the upside, a confirmation above $3,440 would clear the path towards the all-time high at $3,500.