Inflation concerns strengthen hawkish bets on the Federal Reserve, gold drops over 2%

Golden Ten Data reported on March 18 that gold prices fell to a one-month low on Wednesday, as investors weighed the risks of the Federal Reserve adopting a more hawkish policy stance, while high oil prices intensified market concerns about inflation. Spot gold fell more than 2% intraday, reaching its lowest level since February 18. Nemo.money market analyst Jamie Dutta stated that investors are worried that high energy prices will cause interest rates to remain elevated for a longer period. The longer the Iran conflict continues, the more likely this scenario becomes. However, long-term drivers such as central bank gold purchases, stagflation risks, and diversification demand still exist, which means that gold prices are expected to rise by the end of 2026.