Gold traded in a consolidative manner yesterday, staying above the 1225 (S1) barrier, but still below the downtrend line taken from the peak of the 11th of March. Given that the price failed twice to break below 1210 (S2) and that there is still positive divergence between both our short-term oscillators and the price action, I believe that there is scope for gold to continue trading higher for a while. A move above the aforementioned trend line is possible to target the 1243 (R1) resistance level. Looking at our short-term oscillators, I see that the RSI looks ready to turn up from near its 50 line, while the MACD, already above its trigger line, has turned positive. These indicators corroborate my view that the metal is possible to continue trading north. Switching to the daily chart, I would I prefer to see the price above 1243 (R1) before assuming that the medium-term picture is back positive. For now, I prefer to take the sidelines as far as the longer-term picture is concerned.