Gold Faces Uncertain Future Amid Economic Indicators

Gold has entered a recovery phase following its most significant pullback in decades. According to Odaily, analyst Giuseppe Dellamotta from Investinglive suggests that fundamental factors remain unfavorable for a rise in gold prices. The metal is likely to either stay within a broad range below its January peak or face further declines in the coming weeks or months. The U.S. ISM manufacturing PMI released on Monday showed strong performance, with the new orders index reaching its highest level since 2022. Although this data did not trigger a new wave of selling, as the Federal Reserve primarily focuses on the labor market and inflation, the risk of gold prices falling further persists. Today's market will see the release of U.S. ADP employment data and ISM services PMI data. If these figures are unexpectedly strong, they could lead to a hawkish reassessment of interest rate expectations, putting pressure on gold. Conversely, if the data is weak, gold prices might continue to rebound and potentially reach new highs while awaiting next week's non-farm payroll report.