Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focus

• 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.