Gold Price Breaks Through 5,200 US Dollars as Oil Reserve Debate Emerges
Global gold prices rebounded during trading on Wednesday, 11 March 2026, following reports that the International Energy Agency (IEA) proposed releasing the largest strategic oil reserves in history to counter energy shocks resulting from conflict in the Middle East.
According to the Wall Street Journal, the move is estimated to involve releasing over 182 million barrels of oil reserves, exceeding the volume released following Russia’s invasion of Ukraine in 2022.
On global markets, gold prices breached 5,200 US dollars per ounce after rising approximately 1 per cent in the previous session. The precious metal’s gains occurred amid energy price volatility and geopolitical uncertainty.
According to Bloomberg reporting on Wednesday, 11 March 2026, geopolitical tensions remain a market concern. The conflict between the United States and Israel against Iran has entered its twelfth day, with contradictory statements from American officials.
The White House stated that the United States is not escorting oil tankers transiting the Strait of Hormuz, contradicting a deleted social media post by Energy Minister Chris Wright.
Security conditions along this critical shipping lane have caused maritime activity to nearly halt. The Strait of Hormuz is a vital corridor that channels approximately one-fifth of global oil and liquefied natural gas supplies.
Higher interest rates typically present a negative sentiment for gold, as the precious metal generates no interest returns.
Nevertheless, gold prices have demonstrated strong performance throughout 2026, rising approximately 20 per cent since the year’s start, serving as a liquidity source for investors to support their portfolios amid market turbulence.
Since the conflict erupted, gold holdings in exchange-traded funds (ETFs) have actually declined. Bloomberg data shows total ETF gold holdings fell nearly 30 tonnes last week, marking the largest weekly selling activity in over two years.
However, gold prices have remained above 5,000 US dollars per ounce, supported by safe-haven asset demand amid escalating geopolitical tensions and global trade uncertainties.
On the other hand, the conflict continues to disrupt oil production and refining operations across the Middle East.
On Tuesday, 10 March 2026, the Pentagon stated that the United States and Israel launched the most intense attacks against Iran to date and will not cease operations until the country is defeated.
This statement followed President Donald Trump’s earlier signals that the conflict may end soon.
Market participants are also reducing expectations for Federal Reserve interest rate cuts this year ahead of US inflation data releases, which are anticipated to remain above the central bank’s target.
During Wednesday morning trading in Singapore, spot gold prices rose 0.5 per cent to 5,218.42 US dollars per ounce. Silver prices climbed 0.7 per cent to 88.92 US dollars, whilst platinum strengthened 1 per cent and palladium rose 1.3 per cent. The Bloomberg Dollar Index fell 0.1 per cent.