US Close – Risk rally resumes as Trump walks fine line, Oil extends higher after phase-one deal left alone, Gold softer post Trump

Risk appetite remained intact after President Trump did not hit China with fresh tariffs or end the phase-one trade deal. Financial markets reacted positively after Trump laid out a series of policies that did not surprise financial markets. Today was just another round between the US and China in what will be a long war that will easily go well beyond the Presidential election.

Trump followed up with his threats to the WHO with the announcement the relationship will be terminated.  Trump told his administration to revoke Hong Kong’s “preferential treatment” under U.S. law.  The US will launch a working group to study differing practices of Chinese companies listed on US stock markets.  Some Hong Kong officials will be sanctioned and action will be taken to stop entry of some foreign nationals.   Trump’s seriousness was noticeable as he solely focused on his statement and did not take any questions.


Oil prices extended gains after President Trump did not deliver any new tariffs on China or uncertainty that the phase-one trade deal was dead. Trump’s harsh comments over the handling of the coronavirus or Hong Kong’s autonomy was nothing new for energy markets.  Crude prices extended gains after not receiving any news from the Trump presser that would cripple the demand outlook immediately.

WTI crude’s best month on record is ending on a positive note as further reopening announcements continue to support hopes that Europe and the US will finally start to have noticeable better consumption prospects in the coming weeks.


Gold prices pulled back after President Trump was able to walk a fine in delivering a harsh tone on China and refrained from slapping fresh tariffs on China or ending the phase-one trade deal.  Both the dollar and gold slumped following Trump’s comments that did not unveil any surprises.  US-Chinese tensions are not going away anytime soon, but it seems a complete deterioration is unlikely as both countries have fragile economies that can’t handle any additional shocks.  Trump’s China response does not change the bullish outlook for gold.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya