die Schlucht
gorge
A deep, narrow valley with steep, often rocky walls, usually formed by a river or glacier.
Wir wanderten auf einem schmalen Pfad am Rande der Schlucht entlang.
We hiked along a narrow path at the edge of the gorge.

gorge / chasm
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gorge
A deep, narrow valley with steep, often rocky walls, usually formed by a river or glacier.
Wir wanderten auf einem schmalen Pfad am Rande der Schlucht entlang.
We hiked along a narrow path at the edge of the gorge.

You can easily recognize the meaning from the context. If words like 'Felsen' (rocks), 'Fluss' (river), or 'wandern' (to hike) are nearby, it refers to the geographic gorge. With abstract terms like 'Meinung' (opinion), 'Gesellschaft' (society), or 'Politik' (politics), it refers to the figurative chasm.
Die Schlucht zwischen Arm und Reich wird in vielen Ländern größer.
The chasm between rich and poor is growing in many countries.
In the literal meaning, a gorge is often described with adjectives that characterize its shape and size. Common ones are 'tief' (deep), 'eng' (narrow), 'steil' (steep), or 'felsig' (rocky).
Wir blickten von der Brücke in die tiefe, felsige Schlucht.
We looked from the bridge into the deep, rocky gorge.
In the figurative meaning, 'Schlucht' (chasm) describes a large difference that is difficult to overcome. Typical combinations are 'eine Schlucht zwischen' (a chasm between) two groups or opinions. The verb used with it is often 'sich auftun' (to open up).
Zwischen den beiden Verhandlungspartnern tat sich eine unüberbrückbare Schlucht auf.
An unbridgeable chasm opened up between the two negotiating partners.
opposite / contrast
'der Gegensatz' and 'die Schlucht' can both figuratively stand for a large difference. 'der Gegensatz' is the normal, factual word for a strong contrast. 'die Schlucht' in this use is an image: the difference seems like a deep gap that is hard to overcome. Learners may confuse the words because both express separation. But 'Schlucht' is much more figurative and stronger; in everyday language, 'Gegensatz' is usually more neutral and natural.

Zwischen den beiden politischen Gruppen ist eine tiefe Schlucht entstanden.
A deep chasm has developed between the two political groups.
Am Montag besprechen wir den Gegensatz zwischen Stadtleben und Landleben.
On Monday, we will discuss the contrast between city life and country life.