Recently, gold has been trading upwards. The price tested the level of $1,276.25. Anyway, according to the H4 time frame, I have found that there is potential overbought conditions on gold. Since the price reached the upper diagonal of the upward channel, it is a sign that buyers got exhausted. I also found that there is the hidden bearish divergence on the RSI oscillator, which is another sign of the potential weakness. My advice is to watch for a breakout of the support trendline to confirm further downward price movement. The downward target is set at the price of $1,253.00. I expect gold to go back into the median line (mean).
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