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In today's gold forecast, we're witnessing a small rebound not only in gold prices but also across various asset classes, including the major European stock averages while yesterday saw crude oil recovery strongly to close around 1% higher.

AUD/USD has equaled its longest losing streak since August 2019, hammered by deteriorating sentiment towards the outlook for the Chinese economy and investor risk appetite, especially towards big tech. But with signs of stablisation in commodity and US stock futures, the grounds for a squeeze higher are growing.

USD/JPY formed a potential bullish reversal day at key support ahead of today's US inflation report. With decent GDP figures also helping crude oil prices post a decent day's gain.

Stronger GDP, core durable goods orders and the drop in oil inventories have all helped to alleviate demand concerns somewhat, reducing the pressure on oil prices. After today’s reversal-looking price candle, our crude oil forecast has turned modestly bullish.

The robust rally in the first half of the year set high expectations, particularly in the technology sector. While some sector rotation into energy and financials occurred last week, it wasn't sufficient to prevent a broader market decline. Disappointing earnings from key players like Alphabet and Tesla have led to revised investor expectations.

Whilst gold has been under pressure over the past two days, there surely comes a point where dip buyers may want to seek the safety of the precious metal. And I suspect we’re very close to that point.

USD/JPY is on a collision course with key support, plunging for a fourth consecutive day as carry trades involving the Japanese yen are unwound. It’s the kind of move you’d normally expect to see in a crisis, although we’re not in a crisis. Yet.

After a hefty pullback, 19k looms for Nasdaq futures traders. Yet the higher timeframes suggests there could further downside even if it manages a bounce from nearby support. The ASX may fare better as its pullback is so far pale in comparison.

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.

GBP/AUD is rarely as overbought as it is right now. And when it has been this overbought in the recent past, it’s usually coincided with a near-term top.

Gold futures traders waded into the metal ahead of the record high set last week. But if we adjust large speculative positioning for open interest, it turns out they reached a record level of bullish exposure five weeks ago.

NZD/USD looks terrible on the charts, weighed down by the RBNZ’s dovish pivot and renewed concerns towards the outlook for the Chinese economy. While that cyclical play looks ill, a bounce in Nikkei 225 futures has provide a decent long setup into US tech earnings.

AUD/USD tracked copper prices lower for a sixth day, during its worst day in six weeks. Whilst both markets shows the potential for further losses, these may not be the ideal levels for bears to enter.

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.

USD/CNH is threatening to break higher after the PBOC cut key policy rates, putting a potential retest of the 2024 highs on the cards. Given its historical close correlation with USD/JPY, renewed yuan weakness could drag other Asian currencies lower against the dollar.

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.