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Gold edges higher on Monday after suffering a nearly 3% drop last week.
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The precious metal finds support amid continued weakness in the US Dollar.
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XAU/USD remains in a bearish trend, facing resistance at $3,300 and the $3,335–$3,350 zone.
Gold (XAU/USD) is edging higher on Monday, recovering slightly after last week’s sharp 3% sell-off. While the precious metal is drawing some support from a weakening US Dollar, its broader trend remains bearish, with the former support-turned-resistance at $3,300 limiting further upside for now.
Last week's peace agreement between Israel and Iran dampened safe-haven demand, contributing to gold’s steep decline. This week, progress in US trade negotiations with key partners is fostering mild risk appetite, further reducing demand for defensive assets like gold.
Technical Outlook: XAU/USD in a Bullish Correction Within a Bearish Trend
Monday’s bounce appears to be a short-term bullish correction rather than a reversal. The 4-hour Relative Strength Index (RSI 14) remains below the neutral 50 line, reinforcing bearish momentum. Immediate resistance is found at the $3,300 level, aligned with the June 24 low, while the upper boundary of the descending channel—currently near $3,335—adds another cap to upside attempts.
A sustained break above $3,350 (June 26 low) is needed to signal a possible trend reversal. Until then, the bias remains to the downside.
If the rebound falters at current levels, support at the $3,250 area—formed by the June 29 and May 29 lows and the channel bottom—comes back into play. A break below this zone would expose the next key support at $3,205, marked by the May 20 low.
