Gold fell sharply yesterday, breaking below 1225 (R1), the lower bound of the sideways range it has been trading since the last days of February. This has turned the short-term outlook negative in my view and as a result, I would expect a break below 1212 (S1) to initially aim for the next support zone of 1200 (S2). Taking a look at our short-term oscillators though, I see that the RSI rebounded from its 30 line, while the MACD, although below both its zero and signal lines, shows signs that it could start bottoming. These indicators give evidence that an upside corrective bounce could be on the cards before the next negative leg. Switching to the daily chart, I see that the dip below the 1225 (R1) barrier has signaled the completion of a failure swing top formation, something that could carry larger bearish extensions.