Gold prices hit record highs amid geopolitical tensions

International gold prices surged to fresh record highs on Wednesday driven by escalating geopolitical tensions, tight market supply and demand, and rising safe-haven demand.

Since the beginning of this year, global gold prices have climbed more than 70 percent.

On Wednesday, the most actively traded gold futures contract for February 2026 on the New York Mercantile Exchange rose 46.3 U.S. dollars to settle at 4,505.7 dollars per ounce.

Meanwhile, spot gold prices in London also passed the 4,500-U.S.-dollar-per-ounce mark.

Analysts said heightened geopolitical pressure stemming from tensions between the United States and Venezuela, coupled with a sustained decline in the U.S. dollar index, has provided some support to prices of dollar-denominated precious metals futures.

Data show that the U.S. dollar index has fallen nearly 10 percent so far this year and may be headed for its worst annual performance since 2003.

International Energy Agency (IEA) Executive Director Fatih Birol warned on Thursday that the global oil market may enter a "red zone" in July and August this year, as fuel demand rise and stocks dwindle.

Birol noted that the supply crisis triggered by the situation in the Middle East was initially cushioned by spare capacity in the global oil market, but that oil stocks are now gradually decreasing.

The 32 members of the IEA on March 11 unanimously agreed to make 400 million barrels of oil from their emergency reserves available to the market in response to disruptions caused by the Middle East conflict.

The IEA stands ready to coordinate further reserve releases if necessary, Birol added.