Gold Jumps Because of December CPI Report and Low U.S Dollar

GOLD

This morning, it was reported that the consumer price index (CPI) fell 0.1% month-on-month in December. A combination of the CPI news and a 7-month low in the U.S. Dollar (102.60) caused Gold to jump. Gold quickly increased $26 per ounce, to $1,903 before seeing short-term profit taking. $1,900 per ounce will be a major resistance level for Gold and could take a few weeks to firmly move above. At 11am PT today, Gold is trading at $1,898 per ounce up $21 on strong volume.

SILVER

Silver is finally taking some price direction from the Gold price, moving higher forwards the key $24 resistance level. Silver did hit a high of $24.29 in early trading before, again, seeing major selling. At 11am PT today, Silver is up $0.45 per ounce, trading at $23.90 on good volume.