FX.co ★ What to expect from today's meeting of central bank chiefs?

Today's macroeconomic calendar includes a speech by Fed Chair Jerome Powell who has repeatedly informed about the regulator's upcoming steps to combat high inflation.

Although the US central bank decided to leave interest rates unchanged at the June meeting, Powell made it clear that that pause does not mean an end to the rate-hike cycle.

Until recently, some market participants believed that the Fed would end its aggressive rate increases this year. Today, Powell will speak again and will almost certainly reiterate the statements made over the past few weeks. The event will take place in Sintra, Portugal. ECB President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Japan Governor Kazuo Ueda are also set to speak at the conference.

Yesterday, Christine Lagarde stated that inflation is still high and it is too early to declare victory over consumer price rises.

The US Federal Reserve and the ECB are trying to reduce inflation to the same target of 2%.

May inflation in the euro area stood at 6.1% compared to April's 7%. However, this figure is very far from the 2% target.

Accordingly, central bank officials will enhance their positions concerning monetary policy tightening, which in turn will affect financial markets sensitive to interest rates.

Precious metals are at the top of this list as they are non-interest-bearing assets. Whereas the dollar has been losing value in recent days.

This did not help precious metal prices, including gold, recover from recent losses.

This has not helped precious metal prices, including gold, recover from recent losses.

As long as global central banks continue to raise interest rates, it is hard to see precious metal prices rising.

Today's discussion, in which Chairman Powell will participate, can undoubtedly reinforce bearish investor sentiment toward gold seen since early May, which led to a drop in prices from the peak to current levels.