Inflation Concerns Strengthen Fed Hawkish Bet, Gold Falls Over 2%

BlockBeats News, March 18th, according to Bitget market data, the price of gold fell to a one-month low, dropping below $4890 per ounce, down 2.36% intraday. Investors are weighing the risk of a more hawkish Fed stance, while high oil prices have exacerbated market concerns about inflation, falling to the lowest level since February 18th.

Nemo.money market analyst Jamie Dutta said investors are worried that soaring energy prices will keep interest rates elevated for a longer period. The longer the Iran conflict lasts, the more likely this scenario will unfold. However, long-term driving factors such as central bank gold purchases, stagflation risks, and diversification demand still exist, implying that the price of gold will rise by the end of 2026.