Inflation Rate Devalues International Currencies

GOLD

The Gold price fell to $1,824 per ounce when the May CPI Inflation number of 8.6% was reported this morning. This drop reflects concerns that the Federal Reserve may continue to raise interest rates in the face of higher inflation. Then, a strong feeling by traders and central banks started sizable buying based on the long term looks; as the inflation rate devalues currencies around the world. I got home from my European vacation today and Gold reached a high of $1,878 (A one-month high) welcome home present. At 11am PT today, Gold is trading at $1,870 per ounce, up $18 on excellent volume.

SILVER

The Silver price fell to $21.23 as the Gold tested today’s lows, then quickly rallied higher. Silver reached a high of $21.99 before seeing some light selling. At 11am PT today, Silver is up $0.03 per ounce, trading at $21.92 on strong volume.