Gold Price Forecast: XAU/USD corrects lower, approaching $4,200 area

• Gold retreats from all-time highs at $4,380 and returns to the mid-range of the $4,200s.
• Precious metals struggle as fears of a Sino-US trade war dissipate.
• XAU/USD shows a potential double top at $4,380, a common signal of a trend shift.

Gold was rejected at the $4,380 area for the second time on Monday, and the precious metal has lost more than $100 on Tuesday, reverting the previous day's gains, with precious metals hammered by an improving market sentiment and a stronger US Dollar.

US President Trump calmed markets on Monday, announcing that he is planning to meet Chinese President Xi next week, and that he is convinced that they will reach a "fair deal". Trumpo also played down risks of friction on the Taiwan Issue as, he said, China is not planning to invade Taiwan. 

Technical Analysis: Potential Double Top at $4,380

The technical picture shows a potential Double Top at $4,380. The precious metal is trading at $4,260 ahead of the US Session opening, drawing closer to the neckline of the DT's pattern, at the October 17 low of $4,190. 

Technical indicators support that view. The 4-hour RSI shows a bearish divergence and is about to cross the key 50 level, while the MACD in the same timeframe has crossed below the signal line, suggesting that the bullish trend has exhausted.

A confirmation below the mentioned $4,190 level would clear the path towards $4,095 (October 14 low). The DT's measured target is at the $4,000 psychological level. 

To the upside, the all-time high, at the $4,380 area, the $4,400 level will pose some resistance. Further up, the 127.2% Fibonacci extension of the October 14-16 rally, at $4,455, emerges as a potential target.