Gold Slides Nearly 2% After US–UK Accord and Fed News

Gold prices just had their sharpest two‑day retreat in a month, slipping almost two per cent to the low US$3,220s per ounce after President Donald Trump unveiled a post‑Brexit trade pact with the UK Equity markets embraced the accord as a template for further deals, lifting the dollar and drawing capital out of traditional safe havens.

Why the Deal Mattered So Quickly

Although the agreement was modest and focused on steel quotas, autos and agricultural access, investors treated it as a signal. The prospect of follow‑on negotiations with Japan, South Korea, and perhaps even China encouraged a rotation into cyclical shares and drove US Treasury yields to their highest intraday level since the middle of April. Gold, which had touched a record above US$3,500 less than three weeks earlier, finally dipped. Spot bullion fell about 1.9%, while June futures sank more than US$60 from Wednesday before stabilising.

Powell’s Steady‑As‑She‑Goes Stance Added Weight

The slide began a day earlier when Federal Reserve Chair Jerome Powell, speaking after the May policy meeting, repeated that the central bank sees no immediate need to adjust its 4.25–4.50% policy range. With rate‑cut odds pushed further into the future, the dollar index firmed, and the opportunity cost of holding non‑yielding assets rose.

Cross‑Asset Ripple Effects

The Dow Jones Industrial Average advanced more than 250 points, and Europe’s Stoxx 600 added 0.7%. US ten‑year yields climbed nine basis points at one stage, reinforcing dollar strength. In commodities, oil rallied as well, while silver and platinum mirrored gold’s drift lower.

Gold is Still Performing Astronomically

Despite the setback, gold bullion remains roughly 29% higher year‑to‑date and only 9% below its April record, supported by central‑bank demand and lingering geopolitical risk. The latest drop, therefore, looks more like a sentiment reset than a change in the underlying bull trend. Traders now turn to next week’s US CPI release and any follow‑up detail on the UK accord for clues on whether the risk‑on mood has further to go, or whether gold’s safe‑haven appeal will keep eating up investors’ funds.