Institutions: Gold's Decline Has Halved, but Risk of Another Downturn Remains High

Odaily News According to Giuseppe Dellamotta, an analyst at the financial website Investinglive, gold has entered a rebound and recovery phase after experiencing its most severe pullback in decades. However, fundamental factors remain unfavorable for gold price increases, so the price of gold will either maintain a wide fluctuation range below the January high or face the risk of another decline in the coming weeks or months. In fact, the US ISM Manufacturing PMI released on Monday showed strong performance, with the new orders index jumping to its highest level since 2022. Although this data did not trigger a new round of selling (as the Federal Reserve primarily focuses on the labor market and inflation), the risk of further downside for gold prices still exists. Today, the market will receive US ADP employment data and ISM Services PMI data. If the data unexpectedly shows strength, it may trigger a hawkish reassessment of interest rate expectations, thereby putting pressure on gold. Conversely, if the data shows weakness, while waiting for next week's non-farm payroll report, the gold price rebound may continue and break new highs. (Jin10)