Gold traded lower on Friday falling below the support-turned-into-resistance level of 1260 (R1). However, the decline was stopped slightly above the crossroad of the 1246 (S1) support zone and the upside support line taken from the low of the 10th of February. Subsequently the metal rebounded somewhat. I believe that a break below the aforementioned area is needed to shift the near-term outlook negative. Such a move, could set the stage for the precious metal to challenge the 1236 (S2) support line. Our short-term oscillators support further pullback. The RSI fell below its 50 line and is pointing down, while the MACD, although still in its positive territory crossed below its trigger line. On the daily chart, I still see an uptrend, but I also see negative divergence between our daily oscillators and the price action. This increases the possibilities for a corrective move.