Institutions: Gold's decline has been halved, but the risk of further decline remains high

Odaily Planet Daily reports that analyst Giuseppe Dellamotta from the financial website Investinglive stated that gold has entered a rebound correction phase after experiencing its most severe pullback in decades. However, the fundamental factors still do not favor a rise in gold prices, so gold will either remain in a wide trading range below January’s high or face the risk of further 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 rising to its highest level since 2022. Although this data did not trigger a new round of selling (as the Federal Reserve mainly focuses on the labor market and inflation), the risk of further downside for gold remains. Today, the market will see US ADP employment data and ISM Services PMI data. If the data unexpectedly shows strength, it could trigger a hawkish reassessment of interest rate expectations, putting pressure on gold. Conversely, if the data shows weakness, gold prices may continue to rebound and break new highs while waiting for next week’s non-farm payroll report. (Jin10)