Consumer Price Index Surpass Analysts' Estimates as Gold and Silver Continue to Struggle

GOLD

The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 8.2% on a yearly basis in September from 8.3% in August. This reading came in higher than the market expectation of 8.1%.

The Core CPI, which excludes volatile energy and food prices, was up 0.6% and 6.6%, on a monthly and yearly basis, respectively.

Both of these figures surpassed analysts' estimates.

Gold’s first reaction to this report was to decline to $1,642 during European trading, then started to rally in U.S. commodity markets on heavy buying. At 11am PT today, Gold is up $1,671 per ounce, unchanged from yesterday.

SILVER

Silver reacted negatively to the initial September CPI report and fell to $0.60 per ounce, to $18.41. Demand for the popular Silver investment coins and bars continues to be strong, as well as premiums for these items. At 11am PT today, Silver is trading at $18.99 per ounce, up $0.01 on heavy volume.