# Inflation Concerns Strengthen Hawkish Fed Bets, Gold Falls Over 2%

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Mars Finance reports that on March 18, according to market data, gold prices fell to a one-month low, dropping below $4,890 per ounce, down 2.36% for the day. Investors are weighing the risk of the Federal Reserve adopting a more hawkish policy stance, while high oil prices have heightened concerns about inflation. Gold has fallen to its lowest level since February 18. Nemo.money market analyst Jamie Dutta stated that investors are worried that elevated energy prices could keep interest rates high 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 needs still exist, suggesting that gold prices will rise by the end of 2026.

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