Same Fear, Different Fallout: Oil and Gold's Diverging Collapse
KKR Makes Largest Ever Clean Energy Investment With $4.2B EDF Purchase What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market… Gold and oil spent five months moving like they were tied to the same rope.
Both caught a bid from fear thatwar between the United States and Iranwould spiral into something markets couldn’t quite price, and both are unwinding that trade in the same quarter.
Look closer, though, and the two collapses have stopped sharing a cause.
Gold fell for a third straight session Wednesday, dropping to $3,983.07 an ounce and touching its lowest level since November.
The metal sank roughly 14% in the second quarter, its steepest quarterly decline since 2013, a jarring reversal for an asset that hit a record above $5,600 an ounce as recently as January.
Oil's quarter was just as brutal.Brent crudelost close to $45 a barrel between the first and second quarters, its largest quarterly decline since the 2008 financial crisis, whileWTIshed roughly $31, its steepest drop since thepandemic gutted demand in 2020.
Brent alone fell roughly 21% in June, its worst month since March 2020.
The two slides look like mirror images, but different machinery is driving each one.
and Iran signed a memorandum of understanding reopening the Strait of Hormuz, tanker traffic through the waterway has picked back up, and supply that was locked out of the market for months is returning.
Even this week's friction, withIran declining a direct meeting with U.S.
envoys Jared Kushner and Steve Witkoff in Doha, has only put a brief floor under prices rather than reversing the broader trend.
Gold's decline is about something else entirely…the Federal Reserve.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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