The gold complex came under more pressure this week on the reiteration by the US, UK, and European central banks that they are willing to do whatever it takes to combat inflation. This was followed by more selling into quarter-end on Thursday. During the European Central Bank live-streamed event from Portugal, Fed Chair Jerome Powell said the central bank was running against the clock to beat inflation.

Fed policy makers have no choice but to keep raising interest rates to achieve this, Powell said. There is no guarantee that it can provide a soft landing for the economy, he said. “Certainly, there’s a risk,” Powell said of rate hikes.

The U.S. has experienced continuously higher inflation for more than a year. Getting inflation back to the Fed's 2% target will involve "some pain," the increasingly frustrated Fed chair reiterated. The worst pain would be from failing to address this high inflation and allowing it to become persistent.

The U.S. economy is expected to contract by 1% in the second quarter, alarmingly down from the June 27th forecast of +0.3%. The world’s largest central bank continues to make adjustments to its "unconditional" fight for price stability.
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