Gold Rallies as Inflation Rate Changes

GOLD

Gold broke above the key $1,900 resistance level this morning and kept on going, reaching a high of $1,921 before seeing some light selling. The breakout combined with the December report of a decline in the inflation rate is driving up the value of Gold. At 11am PT today, Gold is trading at $1,918 per ounce, up $20 on excellent volume.

SILVER

Finally, Silver firmly broke above the $24 resistance level on excellent volume, and reached a high of $24.37. If the Gold price stays strong, Silver should reach $25 soon. At 11am PT today, Silver is up $0.30 per ounce, trading at $24.20 on strong volume.