At the annual forum of the European Central Bank in Sintra, Portugal, all central bank heads from participating countries voiced a common goal - to reduce inflation to the target level of 2%. They pledged to continue raising interest rates to combat persistently high inflation.

Fed Chairman Jerome Powell emphasized the need to see further easing in the labor market. Several leading economies also experience significant GDP contractions, with the US and Japan seeing GDP levels drop to 1.2%, and England and the Eurozone to 0.6%.

Powell mentioned that rate hikes will likely continue, until data indicates a significant decrease in inflation. Other major central banks such as the ECB, Bank of England, and Bank of Japan, pursue a similar monetary policy.

Powell also hinted at two more 25-basis-point rate hikes this year. The CME FedWatch tool said the first rate hike may take place in July.

The speeches of central bank heads at the forum added volatility to the markets, and their prospective aggressive policies exerted pressure on precious metals.