Gold & Silver Test Support After Strong Inflation Report

GOLD

Today, the core inflation rate for February was released. That inflation rate came in hotter than had been expected at 3.9%. The forecasted rate for February was 3.8%, This is one of the key indicators the Federal Reserve watches, and it was disappointing. Gold reacted to this increase and quickly sold off, dropping $28 per ounce. Gold tested the key $2,150 per ounce support level by hitting $2,151.90 for its daily low. At 11am PT today, Gold is down $22 per ounce, trading at $2,158 on excellent volume.

SILVER

Silver also tested its key support level of $24 per ounce, by reaching $23.97 before rallying back. Staying above $24 per ounce is key to the short-term direction of the Silver price. At 11am PT today, Silver is trading at $24.12 per ounce, down $0.32 on strong volume.