Gold reverses its short term trend

Gold has been falling in an orderly fashion and reaches the 1200.00 zone, round number level which could act as a support, but the MACD indicator on the daily chart is showing us that the trend reversal has been confirmed to the downside. The MACD line (green line) has crossed below its signal line (red line), indicating that the trend has changed to the downside. The histogram’s bars are getting bigger and that is an indication that the trend is gaining strength to the downside. Apparently gold has lost its shine as a safe haven asset and if the FED raises its interest rates then it is possible for the precious metal to continue falling. However, in order for the downtrend to continue in the midterm, it is necessary for the price of gold to break below the 1200.00 level. In the short-term we could see a bullish pullback, which could be healthy for the bearish trend to continue, but the 200 day EMA (blue line) at the 1232.38 level could act as resistance.