Gold Rallies Back Above $1900

GOLD

Gold fell to $1,883 this morning in Asian and early European markets, then came the following announcement. The April core personal consumption expenditures index jumped 3.1%. It had been forecast to increase 2.9%. This key indicator is used by Federal Reserve officials as an important gauge of inflation. On that news, the U.S. Dollar and interest rates dropped and Gold rallied back above $1,900 per ounce. At 11am PT today, Gold is trading at $1,901 per ounce, up $5 on excellent weekend volume.

SILVER

Silver followed Gold’s lead last night and today, first reaching $27.38, then rallying to over $28 per ounce. Silver needs to stay above $28 to build an excellent base for the next leg higher and to remain bullish for professional commodity traders. At 11am PT today, Silver is up $0.08 per ounce, trading at $27.90 on good volume.