Crude Oil Prices Skyrocket After Iran Closes Strait of Hormuz; Gold Plunges on Geopolitical Fears
Surge in Oil as Tensions Escalate in Middle East
Commodity markets witnessed volatile trading on June 11, driven by escalating geopolitical tensions across the Middle East. Investors reacted sharply to fresh US strikes targeting Iranian locations. In response to this escalation, crude oil prices saw a massive surge.Brent crude futures gained $2.30, or 2.5 percent, climbing to $95.40 a barrel. The impact was equally significant for US West Texas Intermediate (WTI) crude, which rose $2.60, or 2.9 percent, reaching $92.63 a barrel. Early in the trading session, US crude futures had reportedly jumped by more than $3.
Precious Metals Hit Targets amid Oil Rally and Inflation Concerns
In the precious metals segment, gold faced sustained selling pressure and extended its decline. Gold touched a more than six-month low during the trading period. This downward movement was largely attributed to rising oil prices following recent developments in the Middle East.Spot gold slipped 0.2 percent to $4,063.87 per ounce. US gold futures for August delivery fell 1.1 percent to $4,086.50 per ounce. This decline occurred after hitting its lowest level since November 21.
Other Metals and Currency Movements Suffer Pressure
Other precious metals also saw declines or remained under pressure. Silver dropped by 1.3 percent, trading at $62.55 per ounce. Platinum futures also traded lower during the session. Palladium, however, managed to trade largely unchanged.The US dollar experienced fluctuations on Thursday. Market sentiment was undermined by new US strikes in the Middle East. Additionally, a surge in May US consumer inflation to a three-year high caused investors concern regarding the Federal Reserve's future monetary policy outlook.
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