Fawad Razaqzada

Later in the week, we will have the release of global PMIs, US GDP and the Fed’s favourite inflation measure – core PCE price index – all of which having the potential to impact the short-term gold forecast.

Investors are turning their attention to US earnings with 29% of the S&P 500 companies set to report their results this week. Tonight, we will hear from two of the “Magnificent Seven” tech stocks, Alphabet and Tesla, which could impact the S&P 500 forecast.

Gold's failure to hold above the previous record highs has raised some concern that the metal may have hit a peak. However, I am doubtful that is the case and expect the precious metal to bounce back, potentially reaching a new record soon. So, my gold forecast remains bullish as before despite the metal extending lower at the start of this week.

In this week's EUR/USD outlook, we see important macro events in the days ahead which could set the short-term tone for this and other major FX pairs. But first, we will begin by looking at the chart to remind ourselves of the trend.

Our EUR/USD forecast remains bullish but in light of the dollar recovery and the mild risk-off sentiment, we wouldn’t rule out some further short-term weakness after rates fell back below the 1.09 handle following the ECB’s rate decision. The week ahead promises to be an important one for the FX markets, with the release of global PMIs, US GDP and the Fed’s favourite inflation measure.

While the tech sector's struggles have dominated headlines, it's crucial to note that the broader stock market's performance is not solely dependent on the "magnificent 7" group of tech stocks. The Dow Jones Industrial Average reached its fourth consecutive record high on Wednesday, driven by sector rotation. The small-cap Russell 2000 index has also posted substantial gains lately, spurred by last week's inflation report showing consumer prices falling to 3.0% year-over-year in June.