Both Gold & Silver Move Higher On Positive CPI News

GOLD

Today the U.S. Bureau of Labor released the June Consumer Price Index (CPI), surprising the market as it declined -0.1% after being flat in May. Economists were expecting an increase of 0.1%. U.S. consumer prices cooled more than expected in June, boosting hopes for a September rate cut from the Federal Reserve. The U.S. Dollar Index moved lower, but Gold quickly rallied higher on this news, breaking above $2,400 and reaching a high of $2,425 before seeing some light profit-taking.

At 11am PT today, Gold is trading at $2,413 per ounce, up $41 on excellent volume.

SILVER

Silver soared higher on this anti-inflation CPI news, moving back above the $31 per ounce resistance level. Silver reached a high of $31.80 this morning before seeing heavy selling. Staying above the $31 level for a few weeks would make it an important support level for the next move.

At 11am PT today, Silver is up $0.60 per ounce, at $31.40 on excellent volume.