Gold Retraces as USD Slips on Softer CPI Data

On Tuesday, the U.S. Dollar Index retreated sharply, falling 0.79% to close at 100.98, as the latest CPI report came in slightly below expectations, erasing most of the previous sessions gains. Spot gold rebounded above the $3,250 level, ending the day up 0.43% at $3,250.10 per ounce. Silver prices also advanced, with spot silver closing 0.97% higher at $32.90 per ounce. A renewed wave of investor interest in commodities, spurred by progress in U.S.-China trade negotiations and the softer inflation print, pushed WTI crude up 2.67% to $63.58 per barrel and Brent crude up 2.45% to $66.54.

Key Themes to Watch

● Saudi Arabia Pledges $600 Billion Investment in the U.S.

The White House announced the largest-ever commercial deal between the U.S. and Saudi Arabia, including $80 billion in advanced tech investments involving Google, DataVolt, and Oracle; $20 billion in AI data centers and energy infrastructure led by DataVolt; a $4.8 billion Boeing aircraft procurement; and a record-setting $142 billion arms deal. Crown Prince Mohammed bin Salman stated that Saudi investment in the U.S. could eventually reach $1 trillion.

● U.S. May Greenlight Over 1 Million NVIDIA Chips to UAE for OpenAI Data Centers

During former President Trump‘s upcoming Middle East visit, the administration may announce OpenAI’s plan to build a data center in the UAE. The project‘s feasibility hinges on access to NVIDIA’s advanced chips. The Trump administration is reportedly considering easing export restrictions to allow U.S. firms operating in the UAE to receive shipments of high-end chips for data infrastructure development.

Data to Watch

22:30 GMT+8 – U.S. EIA Crude Oil Inventories (Week of May 9)

22:30 GMT+8 – U.S. EIA Cushing Crude Oil Inventories (Week of May 9)

22:30 GMT+8 – U.S. Strategic Petroleum Reserve (Week of May 9)