July Consumer Price Index and its Effect on Precious Metals

GOLD

Today we saw Gold break above $1,800 for the second time this week, reaching a high of $1,809 before seeing light selling. The July Consumer Price Index (CPI) was reported today showing no increase in consumer inflation for July. That news had a positive effect on most financial markets, including precious metals. The thinking is that the Fed would be less aggressive on future rate hikes. At 11am PT today, Gold is trading at $1,798 per ounce, up $2 on average volume.

SILVER

Silver reacted stronger than Gold on the July CPI numbers, reaching a high of $20.94 before seeing light profit taking. If Gold can firmly move above the $1,800 level, Silver should break the $21 resistance level. At 11am PT today, Silver is up $0.20 per ounce, trading at $20.70 on normal volume