The bearish trend is still in place on gold

Gold has had a very good bearish trend due to the fact that the risk appetite has risen among investors that are choosing instruments with a higher return. The recent rally on the Dollar has also contributed in the pullback that gold is having due to the negative correlation that exists between the greenback and the precious metal. On the daily chart of gold we can see that the price has come very close to the 200 day EMA and the 200 week EMA around the 1261 level and that zone may act as a support, but on the other hand, the MACD indicator is showing us that the bearish trend is still in place and it is getting stronger according to the bars on the histogram. Therefore, we could also see a breakdown of the 1261 level. If the price of gold breaks below the 1261 level, then it would have the road clear to drop all the way to the 1206 level where it started it latest bullish trend. If gold bounce to the upside from the 1261 zone, then it would have to break above the bearish trendline in order to go back to its bullish trend.