January's "Core" Inflation Rate Jumped To 6%

GOLD

Today, the “core” inflation rate for January was released, showing a jump to 6%, while the CPI rose and is on a 7.5% annual pace, the fastest annual increase since 1982. Based on this news, the 10-Year Treasury broke through the 2% level and Gold headed lower. Gold opened down $12, but quickly moved higher on strong demand. At 11am PT today, Gold is trading at $1,839, up $1 on very heavy volume.

SILVER

Silver reacted to the inflation news by moving higher, reaching a high of $23.65 before seeing short-term profit taking. Higher inflation news should be more positive for Silver than any other precious metal. At 11am PT today, Silver is trading at $23.57, up $0.14 on slightly below average volume.