CPI Increasing Higher Than Expected, Affecting Markets Dramatically

GOLD

Today, the August Consumer Price Index (CPI) came in at an annual increase of 8.3%. This was higher than the 8.1% increase that was expected, that number dramatically affected many financial markets. Gold initially dropped below the key $1,700 per ounce support level, but rallied back on heavy buying. This was the third, and hopefully last time Gold has tested the key $1,700 support level. At 11am PT today, Gold is down $24 per ounce, trading at $1,706 on excellent volume.

SILVER

After rallying $1 yesterday on anticipation that we would have a lower CPI number, Silver sold-off this morning. However, Silver initially dropped only $0.50, then quickly rallied back $0.15 on strong volume, it was a great sign of price support. At 11am PT today, Silver is trading at $19.51 per ounce, down $0.33 on heavy volume.