Institution: Gold's Decline Has Halved, but Risk of Further Downturn Remains High

Odaily Financial website Investinglive analyst Giuseppe Dellamotta stated that gold has entered a rebound and recovery phase after experiencing its most severe pullback in decades. However, fundamental factors remain unfavorable for gold price appreciation; therefore, gold prices will either maintain a wide fluctuation range below January's highs or face the risk of another downturn in the coming weeks or months. In fact, the strong performance of the US ISM Manufacturing PMI released on Monday saw the new orders index surge 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 declines in gold prices persists. 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, gold prices may continue their rebound and break new highs while awaiting next week's non-farm payroll report. (Jin10)