[MARKET ANALYSIS] Oil rallied and gold sold off after US President Trump's tough talk during the primetime address

President Trump's tough rhetoric regarding Iran has escalated market tensions, leading to a significant rally in oil prices while dampening gold's appeal.

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[MARKET ANALYSIS] Oil rallied and gold sold off after US President Trump's tough talk during the primetime address

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WTI/Brent: WTI May'26 +3.0% / Brent Jun'26 +3.8%

  • Oil prices climbed with WTI crude ascending back above the USD 100/bbl level after tough talks from US President Trump at his primetime address dampened hopes of a de-escalation, with Trump threatening to hit Iran's electric plants if there is no deal and said they could hit Iran's oil.

Gold: -1.3%

  • Retreated as the dollar, oil and yields climbed after hopes for an off-ramp in the Iran conflict were dashed by President Trump's latest threats.

Copper: -1.2%

  • Declined as risk sentiment was soured by Trump's fighting rhetoric against Iran.
Context

This reaction suggests that traders are reacting to heightened geopolitical risk, which typically benefits oil and weighs on safe-haven assets like gold. Watch for potential further volatility as the situation develops, particularly within energy markets and currencies linked to commodity performance.

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