Gold & Silver Back On The Bullish Track

GOLD

The U.S. Labor Department announced this morning that the Producer Price Index (PPI) fell -0.1% in August, below expectations and following a July’s unrevised 0.9% rise. The latest inflation data was cooler than expectations, as economists looked for a 0.3% increase. As precious metal analysts see this PPI report as being more bullish for Gold and Silver because the Federal Reserve will likely announce an interest rate cut at the meeting next week. The interest rate cut of ¼ or ½ percent should send the Gold price towards $3,700. Right now, Gold has been trading above and below the $3,650 level for the past few trading sessions worldwide.

At 11am PT today, Gold is up $2 per ounce, trading at $3,645 on average volume.

SILVER

Silver traded today between $40.64 and $41.35 per ounce, as it shows excellent price support around the $41 level. With Gold at record price levels, we are seeing a slight move in overseas trading towards Silver, and the increased volume is reflecting it.

At 11am PT today, Silver is up $0.33 per ounce, trading at $41.18 on normal volume.