Gold tops 5,000 USD to record high amid global tensions

Gold futures for February delivery on the New York Mercantile Exchange briefly surpassed 5,000 U.S. dollars per ounce on Sunday.

The surge marks a historic high for the precious metal, reflecting heightened investor demand amid ongoing economic uncertainties.

Market analysts suggest that geopolitical tensions, inflation concerns, and volatility in other asset classes have driven investors toward gold as a safe haven, fueling the price rally.

The European Union is facing the risk of a stagflationary shock as the ongoing conflict in the Middle East is driving up energy prices and clouding the economic outlook, European Commissioner for Economy Valdis Dombrovskis said on Monday.

The European Commission's spring 2026 economic forecast, to be released later this week, will see economic growth figures adjusted down and inflation figures up, said Dombrovskis during an interview while attending a meeting of finance ministers from the Group of Seven (G7) in Paris.

With the Strait of Hormuz closed and oil prices staying above 100 U.S. dollars per barrel, fears of stagflation have risen in recent weeks, said Dombrovskis, adding that the margin of action by policymakers is "more limited" now.

The commissioner said it's important that the bloc take temporary, targeted support measures rather than measures that sustain high demand for fossil fuels.

Dombrovskis also described the EU's release of strategic oil reserves as "ongoing," while warning of concerns about shortages in areas such as innovative fuels.

The International Energy Agency Executive Director, Fatih Birol, said on Monday that commercial oil stocks are declining "rapidly", with several weeks of supply left due to the consequences of the conflict in the Middle East.