Global Central Banks are convening in Portugal under the auspices of the European Central Bank to discuss global policies. 

Markets hope to see more clues on the path forward, with expected discussions starting today from Fed Chair Jerome Powell, ECB President Christine Lagarde, and others. 

The Fed 

Fed Chair Jerome Powell might provide clues on the prospects of a 0.75% rate hike by the Fed in July. 

He might also provide clues on the path forward in 2022 for interest rates. 

A bullish stance will certainly bolster the dollar against a basket of major rivals. 

ECB

Analysts expect the European Central Bank to hike rates by 0.25% at the July meeting, and by another 0.25% in September to control inflation. 

Now analysts go as far as expecting a full 0.5% rate hike in the July meeting, if Lagarde sent bullish remarks. 

The BoE

Bank of England last hiked rates by 0.25% to 1.25% at its last meeting for the fifth time in a row. 

However, a slew of disappointing UK data is casting doubt on future rate hikes by the BoE. 

Gold prices fell in European trade for the third straight session to two-week lows as dollar climbs against a basket of major rivals. 

Gold is also pressured by weaker demand on non-yielding assets amid higher interest rates as global central banks move to control inflation. 

Prices Today

Gold prices declined 0.4% on Wednesday to $1,812 an ounce, off a session-high at $1,822 an ounce, after losing 0.2% yesterday, the second loss in a row. 

The Dollar

The dollar index rose 0.2% on Wednesday for a second session against a basket of major rivals, pressuring gold prices. 

The gains came as US yields improved once more on prospects of a 0.75% rate hike by the Fed in July. 

Global Banks

Global Central Banks continue to move to control runaway inflation by hiking rates and tightening policies. 

The SPDR 

Gold holdings at the SPDR Gold Trust fell 2.03 tones yesterday, the sixth decline in a row, to a total of 1,054 tones, the lowest since May 17/ 

Euro declined in European trade against dollar for second straight session off three-week highs on active profit-taking, ahead of ECB President Christine Lagarde's speech later today in Portugal on the future of monetary policies. 

EUR/USD fell 0.5% on Wednesday to 1.0486, after closing down 0.6% yesterday, the first loss in three days off three-week highs at 1.0615. 

Euro fell on Tuesday as Lagarde failed to present a new viewpoint on the path forward for European interest rates. 

Lagarde

European Central Bank President Christine Lagarde is speaking later today in Portugal and might offer fresh views on the future of monetary policy in the EU.  

German Bonds

German 10-year bond yields fell 5.5% on Wednesday, pressuring euro against a basket of major rivals. 

The decline came after a spate of data that indicated the inflation might have reached its peak.

Oil prices declined on Wednesday ahead of US inventory data and the OPEC + meeting. 

OPEC and other independent producers are convening to discuss developments in the global oil market, expected to maintain current goals of hiking output by 648 thousand bpd in July and August. 

Initial US data showed a drop of 3.8 million barrels in US crude stocks last week.

Official data will be released today from the US governments on crude stocks. 

US crude futures due in August fell 0.3% to $111.4 a barrel as of 6:10 GMT.

Brent August futures declined 0.5% to $117.4 a barrel.