Gold Prices Rise As Optimism on Tomorrow Release of Key U.S. CPI Inflation Data

GOLD

A small sell-off in the U.S. Dollar Index (down to 108) has helped Gold rally this morning from a Asian low of $1,711 per ounce to $1,735. Strong demand in late European trading and at the opening of U.S. trading drove the Gold price to above the $1,730 resistance level. Part of today’s precious metal rally is based on some optimism on tomorrow release of key U.S. CPI inflation data. If the key inflation rate is under 8% that could be good for precious metals. At 11am PDT today, Gold is trading at $1,730 per ounce, up $13 on excellent volume

SILVER

Undervalued Silver flew as Gold moved higher today. At one point today, Silver was up over $1 as fresh buying appeared in all Silver markets, physical, stocks and options. Physical Silver reached a high of $19.95 before seeing little short-term profit taking. At 11am PDT today, Silver is up $1.00, trading at $19.84 on strong volume.