XAU/USD: Gold Dives 2% as Trump Boasts Trade Progress, US and Ukraine Sign Minerals Deal

US President said he’s nearly reached “potential” trade agreements with some of America’s biggest partners. Also, the US and Ukraine finally shook hands on a minerals deal.

💥 Gold Slumps to $3,220

• Gold XAUUSD took a hard hit Thursday, falling 2% to $3,220 an ounce, and touching its lowest point since mid-April. The safe-haven metal — the crown jewel of the early second quarter — is now seeing profit-taking and momentum unwind as traders rotate out amid cooling geopolitical tensions and a resurgent dollar.
• Driving the outflows is a surprise one-two punch from President Trump, who told reporters he’s closing in on “potential” trade agreements with India, South Korea, and Japan. That’s a marked shift in tone from weeks of combative tariff threats. Add to that a landmark minerals deal between the US and Ukraine, and the market mood has turned cautiously optimistic.

🍃 Safe Haven Unwinds

• The newly signed minerals agreement grants the US access to Ukraine’s rare earths and critical materials — a diplomatic breakthrough that also serves as a signal to Russia that Washington is now pivoting from direct military aid to long-term economic partnership.
• Treasury Secretary Scott Bessent called the deal “a step toward a negotiated end” to the war and “a beginning of reconstruction.” With rhetoric like that, traders began unloading their risk hedges — and gold got clipped.
• What’s even more noteworthy? The US dropped its request to be repaid for billions in military aid, a major concession that suggests the Trump administration is likely looking for a clean slate and a new kind of global influence — one less reliant on troops and more tied to trade and commodities.

👀 Eyes Now on Payrolls

• With geopolitical pressure easing (at least for the moment), gold’s near-term momentum has flipped. The non-yielding metal, which flourished in April amid tariff anxiety and Fed drama, is now struggling to justify new highs as the dollar flexes and bond yields stabilize.
• The focus now shifts to Friday’s nonfarm payrolls report, which could help shape interest rate expectations. A hot print could throw more cold water on gold — while a weak one might reopen the door to rate cuts and rekindle some golden love.