CCI Declining Means Bad News For Gold And Silver

GOLD

Gold reached a low of $1,804.70 this morning during European trading. Then, the U.S. markets opened and it was announced that the Consumer Confidence Index (CCI) dropped to a low of 102.9, compared to an estimate of 108.5. This is the second consecutive month the CCI has declined. Both Gold and Silver quickly rallied on this anti-inflationary news. At 11am PT today, Gold is trading at $1,829 per ounce, up $9 on excellent volume.

SILVER

After the CCI was released, Silver quickly rallied from $20.40 to over $21 on excellent volume. Much on the buying was from professional traders who were covering short-sells. These traders were short because they felt Silver would soon reached the $20 support level. At 11am PT today, Silver is trading at $20.93 per ounce, up $0.18 on strong volume.