Gold & Silver React To Higher CPI Numbers

GOLD

The U.S. Labor Department announced this morning that the consumer Price index (CPI) for August had increased by 0.6%, the largest gain since June 1922. In the past 12 months the CPI has jumped 3.7%, higher than the Federal Reserve’s inflation target of 2%. Gold reacted to the news by dropping to $1,905 (above the key $1,900 support level). At 11am PT today, Gold is trading at $1,910, down $3 on excellent volume.

SILVER

Silver had a more severe reacting to the CPI report, dropping below the key $23.00 support level and reaching $22.71 before finding bargain buying. At 11am PT today, Silver is down $0.30 per ounce, trading at $22.85 on excellent volume.