On March 23, international gold prices experienced another significant decline. As of 10:10 AM, COMEX gold fell to $4,322 per ounce, dropping over 5%, while London spot gold decreased to $4,318.825 per ounce, down more than 3%.

Over the past week, international gold prices have undergone a steep downturn. By March 21, Beijing time, the spot price of London gold had broken below the key level of $4,500 per ounce, recording a weekly decline of 10.49%, the largest single-week drop since March 1983.

Despite ongoing geopolitical tensions in the Middle East, gold, typically a safe-haven asset, has shown unusually weak performance. Analysts point out that the primary reason is a shift in market focus from "geopolitical避险" to "inflation expectations and monetary policy博弈." The conflict in the Middle East has ignited the crude oil market, rapidly fueling strong concerns about a resurgence in global inflation.

In response to potential "stagflation" risks, central banks of major global economies may need to reassess their monetary policy paths. Currently, the CME FedWatch Tool indicates that market expectations for a Federal Reserve rate cut this year have fallen below 10%, with some even anticipating a rate hike. This has increased the attractiveness of interest-bearing assets like bonds, while reducing the appeal of gold, which yields no interest. At the same time, the recent strengthening of the U.S. dollar has suppressed gold purchasing demand, adding downward pressure on prices.

Despite the short-term setback, several Wall Street institutions remain optimistic about gold's long-term prospects. Analysts believe that continued gold purchases by global central banks, the trend toward de-dollarization, and geopolitical uncertainties will continue to support gold prices. J.P. Morgan still forecasts that gold futures could reach $6,300 per ounce by the end of 2026, while Deutsche Bank maintains its long-term target price of $6,000 per ounce.