PPI Eases, Gold Pulls Back Amid Cooling Inflation Signals

Market Overview

On Thursday, the U.S. dollar weakened following a deceleration in April retail sales and an unexpected decline in the Producer Price Index (PPI). The U.S. Dollar Index fell 0.22% to close at 100.79. The yield on the 10-year Treasury note settled at 4.4350% as weak economic data and a softer dollar drove safe-haven demand. Spot gold rose sharply by 1.97%, closing at $3,239.21 per ounce, while spot silver climbed 1.30% to $32.62 per ounce. Meanwhile, oil prices retreated as expectations of a potential U.S.-Iran nuclear deal raised concerns over increased supply. WTI crude dropped 2.63% to $61.17 per barrel, and Brent crude slid 1.89% to $64.53.

Hot Topics to Watch

● Trump Signs $200 Billion Commercial Agreement with UAE, Includes 5GW AI Data Center

The U.S. and UAE are set to develop a 5GW AI data hub—the largest of its kind outside the U.S.—with multiple American firms participating in operations and cloud service delivery. The White House announced that the deal includes a $14.5 billion order for 28 Boeing aircraft by Etihad Airways, a $60 billion oil and gas expansion initiative, a gallium project involving Raytheon, a $10 billion nuclear reactor investment in partnership with Holtec, AI and IIoT projects supported by Qualcomm, and a public cloud infrastructure program featuring Amazon Web Services.

● April Retail Sales Edge Up Just 0.1% as Consumer Spending Shows Signs of Strain

U.S. retail sales saw minimal growth in April, hinting at weakening consumer resilience amid rising prices and tariff-related uncertainty. Out of 13 retail categories tracked in the report, 7 recorded declines, with sporting goods, gasoline stations, and apparel among the hardest hit.

Key Economic Events (GMT+8)

17:00 – Eurozone March Trade Balance (seasonally adjusted, in € billions)

20:30 – U.S. April Housing Starts (annualized, in thousands)

20:30 –U.S. April Building Permits (in thousands)