Commodity wrap: gold tops $4,900; oil plunges 13% as Iran reopens Hormuz

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Gold prices climbed over $4,900 per ounce on Friday for the first time in nearly a month as the dollar fell against major currencies, and as hopes for a peace deal between the US and Iran increased.Silver on COMEX also surged 5% and breached the $83 per ounce mark, tracking gains in gold.Friday saw a steep drop of approximately 13% in oil prices. This decline followed two key developments: Iran's foreign minister announced that the Strait of Hormuz was open for all commercial vessels for the remainder of the ceasefire, and US President Donald Trump stated that Iran had agreed not to close the Strait in the future.Meanwhile, aluminium prices dropped as supply concerns from the Strait of Hormuz eased, following statements from Iran and the US.Following Iranian strikes on smelters in Abu Dhabi and Bahrain late last month, Aluminium prices had soared by about 15%.This surge intensified supply deficits, leading JPMorgan to issue a stark warning that the industry is facing a "black hole."At the time of writing, the three-month aluminium contract was at $3,553.30 per ton, down 2.5% from the previous close.Gold surgesGold prices saw further increases on Friday, supported by a weaker dollar and a statement from Iran's foreign minister.The minister's comments, which helped push oil prices down, also served to alleviate some inflation worries.“The price of gold has also rebounded amid hopes for an end to the war, as this eases concerns that central banks will have to respond to higher inflation risks with a more restrictive monetary policy, thereby increasing the opportunity cost of holding gold,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report.At the time of writing, the COMEX gold contract was at $4,889.99 per ounce, up 1.7% from the previous close.The contract had risen to $4,912.04 an ounce earlier in the session, its highest level in nearly a month.The current price for an ounce of gold has increased by $400 since mid-March, now exceeding $4,800.However, as long as uncertainty remains high, the recovery potential in the gold market is likely to be exhausted for the time being.Barbara LambrechtCommodity analyst at Commerzbank AGFollowing the comments regarding the opening of Hormuz, both the US dollar and oil prices continued their decline.This drop in the US currency increases the appeal of bullion for those holding other currencies.Oil...

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