I believe stocks and gold will diverge in this specific environment of uncertainty over the direction of the Trade War. Markets are wanting a swift resolution, and we have not seen any sign that a swift resolution is on its way. The developing Hong Kong situation is likely to strengthen Trumps hand in the US, as if China is seen to be cracking down on Hong Kong it will harden US attitudes across the board. Lingering uncertainty is like kryptonite for markets and will drive gold's safe haven demand.
If Trump is successful in extracting further rate cuts from The Fed, or if The Fed decides of its own accord that further cuts are the way forward, then a lower USD could be supportive of gold while also providing some support for markets.
