Step 1
Show that $3\geq x_n\geq 1$ for all $n=1,2,\cdots.$
Notice $3\geq x_1\geq 1$. Assume $3 \geq x_k\geq 1.$ Then $3 \geq 3-\dfrac{1}{3}\geq x_{k+1} \geq 2 \geq 1.$ By induction, done.
Step 2
Show that $x_{n+1}\geq x_n$ for $n=1,2,\cdots.$
Notice $x_2=2 \geq x_1.$ Assume $x_{k+1} \geq x_{k}.$ Then $x_{k+2}=3-\dfrac{1}{x_{k+1}}\geq 3-\dfrac{1}{x_k}=x_{k+1}$. By induction, done.
Step 3
Show that $x_n$ is convergent.
Since $x_n$ is increasing and bounded above, hence $x_n$ is convergent.
Denote $\lim\limits_{n \to \infty}x_n=L.$ Then take the limits of the recursion formula. We have $L=3-\dfrac{1}{L},$ namely $L^2-3L+1=0.$ Thus, $L=\dfrac{3\pm \sqrt{5}}{2}.$ But since $x_n \geq 1,$ then $L \geq 1$. Hence $L=\dfrac{3+\sqrt{5}}{2}.$