Both Gold And Silver Fall On Strong PPI Report

GOLD

This morning, the producer price index (PPI) report was released, showing a seasonally adjusted 0.7% increase on the month. Excluding volatile food and energy costs, so-called core PPI increased 0.5%. The forecast was for increases of 0.3% for both measures. Gold fell $165 an ounce on the sharp increase in the PPI, reaching a low of to $4834 per ounce before finding bargain buying.

At 11am PT today, Gold is down $110 per ounce, trading at $4,892 on heavy volume.

SILVER

The Silver price also fell on the PPI news, reaching a low of $75.53 before finding bargain buyers. Unable to hold the key $80 support level, $75 is now Silver’s support level.

At 11am PT today, Silver is trading at $77.05 per ounce, down $2.85 on strong volume.