Gold Price Forecast: XAU/USD remains vulnerable, with $4,000 on sight

• Gold extends losses on risk appetite and nears $4,000
• Positive comments from Trump have boosted hopes of a Sino-US trade deal.
• The positive risk sentiment is undermining support for the safe-haven Gold.

Gold remains on its back foot on Monday amid moderate risk appetite, amid market hopes of a trade deal between the US and China. The precious metal depreciated nearly 2% on Monday, trading at a short distance from the $4,000 support area.

Comments by US President Donald Trump, reiterating his optimism about the chances of reaching a good trade deal with Chinese President Xi Jinping at their meeting later this week, have calmed concerns about further restrictions on global trade and are buoying market sentiment.

Technical Analysis: Gold is on a bearish correction from all-time highs

From a technical perspective, a look at the 4-hour charts shows bears in control, as price action corrects lower from all-time highs near $4,400. Upside attempts remained capped well below a previous support level at $4,185 last week, highlighting the bearish momentum.

On the downside, immediate support is at the $4,000 psychological area, where bears were capped on October 22. This level closes the path towards the October 9 and 10 lows, at $3,945, and the  61.8% Fibonacci retracement of the September 18 - October 17 bullish run, a common target for corrections.

Upside attempts remain capped below $4.150 (October 22 and 23 highs), below here, the previous support at the mentioned $4185 area might hold bulls ahead of the all-time high, near $4,380

Further down, the $3945 area, where the pair found support on October 7, 9, and 10, emerges as the next target ahead of the October 2 low, at $3,845. To the upside, the intraday high at the $4,160 area and the October 17 low at $4,185 are closing the path towards the all-time high at $4,380.