NEW YORK/LONDON – Global commodity markets showed sharp divergence on Thursday as gold prices tumbled from record highs while oil surged amid escalating US-Iran tensions and renewed threats to the strategic Strait of Hormuz .
Gold experienced its most significant single-day drop in nearly three months, falling approximately $75 to trade around $3,290 per ounce . The decline came as investors locked in profits following a historic rally that saw the precious metal hit an all-time high of $3,460 on April 16, driven largely by fears of a full-scale Middle East war .
Analysts attributed the correction to easing concerns over US dollar weakness and the temporary removal of immediate default risks. Despite the sharp drop, gold remains roughly 10% higher over the past month, and major banks including Goldman Sachs and Bank of America have maintained their bullish outlook, forecasting prices could reach $3,700 to $4,200 over the next year .
In stark contrast, oil prices surged more than 7% as tensions flared again in the Strait of Hormuz . Brent crude approached $95 per barrel while West Texas Intermediate rose to approximately $89 following Iranian threats to close the strategic waterway unless ceasefire negotiations succeed .
The Strait of Hormuz is a vital chokepoint through which approximately one-fifth of global oil supply passes. Iran has repeatedly warned that continued US naval blockades and failed diplomacy could trigger a full closure, sending energy prices sharply higher .
Concerns have also resurfaced over a potential Israeli strike on Iranian oil infrastructure, which analysts say could immediately drive fuel costs to $120 per barrel . The market remains on edge as the April 22 ceasefire deadline approaches with no final agreement in sight .
