The possibility of growth remains.

On the daily chart, the upward third wave of the higher level 3 of (5) continues to develop, within which wave iii of 3 has formed, while on the four-hour chart, the correction has ended as wave iv of 3, wave (c) of iv, and wave v of 3 is developing. If the assumption is correct, the upward dynamics of the XAU/USD pair will continue to the area of 3800.00–4000.00. The level of 3241.00 is critical and stop-loss for this scenario.

The XAU/USD pair is testing the level of 3340.00 on the breakout during the morning session. Market activity remains muted as investors are reluctant to open new positions ahead of the release of June US labor market data on Thursday at 14:30 (GMT+2). The report will be released a day earlier because trading floors will be closed on July 4 for Independence Day. 

The XAU/USD pair corrected to 3346.00 amid the de-escalation of the Iran-Israel conflict and a decline in investor interest in shelter assets.

On the four-hour chart, the XAU/USD pair corrected upwards to 3331.15 (61.8% retracement), but was unable to break above it: from this point, a downward trend is likely to develop with a target of 3263.00 (100.0% retracement).