Market watch: gold’s recent decline indicates a return to the $1,980 support level

The price of gold dropped below the $2,018 support level and the previous low after the CPI data was published. The price is projected to drop further as technical indicators indicate a decline to the $1,980 support.

Gold has been in continuous decline since the start of the current and the price has made lower lows since then. The market structure is also bearish on the smaller time frames and the price is likely to continue the bearish momentum for some time.

I am expecting the price of gold will drop to the $1,980 support level after making the correction from the recent drop. My recommended entry level for this trade would be $2,025.

Fundamentally. the price is likely to remain stable for the coming few days as there is no high-impact news on the US dollar that could impact the price of gold significantly.

However, next Thursday the Jobless claims data will be published, if the data turns out positive it will push the price of gold down and if the data turns negative the price of gold will surge.

• The price of gold is likely to drop further after retesting the $2,025 level.
•  The price is likely to drop to the $1,980 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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