Gold traded somewhat higher yesterday after it hit support near 1210 (S1). However, the advance was limited marginally below the 1225 (R1) resistance hurdle. Given that last week, the metal fell below 1225 (R1), the lower bound of the sideways range it had been trading since the last days of February, I still believe that the short-term outlook remains negative. I would expect the bears to regain momentum at some point and aim for another test near 1210 (S1). A dip below that level could prompt extensions towards the round figure of 1200 (S2). Looking at our oscillators, I see that the RSI stands below its 50 line and turned down again, while the MACD, although above its trigger line, shows signs that it could turn south as well. These indicators corroborate my view that the metal is poised to trade lower for a while. Switching to the daily chart, I see that the dip below 1225 (R1) has signaled the completion of a failure swing top formation, something that supports the case for further declines in the foreseeable future.