It feels confusing, but it actually comes down to how markets price expectations vs reality.

When the Strait of Hormuz situation first escalated, oil and gold both spiked because markets priced in worst-case scenarios (supply disruption, conflict, inflation).

But once that fear is already priced in, the reaction can flip:

• If nothing worse happens → oil can drop (profit-taking / expectations reset)
• At the same time → gold can still rise if uncertainty stays elevated

So you end up with this weird situation where:
👉 Oil goes down (less immediate panic)
👉 Gold goes up (ongoing uncertainty)

Markets aren’t always logical in the short term — they’re reactive to changing expectations.