Markets React To Labor Department's April Consumer Price Index

GOLD

Today is the fifth trading day in a row that Gold has closed over $1,800 per ounce, and is now is establishing a base between $1,800 and $1,850 per ounce. This morning the U.S. Labor Department reported that the April consumer price index jumped 0.8%, up from the 0.6% reported in March. The Labor Department stated that the food and energy component was the key driver of this increase, as it soared 0.9%. The U.S. Dollar Index and interest rates moved higher on this news and Gold sold off, reaching a low of $1,818 before seeing strong buying. At 11am PT today, Gold is trading at $1,824, down $15 on average volume.

SILVER

The Silver price declined with Gold, reaching a low of $27.09 on light selling. Today is also the fifth trading day in a row that Silver has closed above the key $27 per ounce level. Silver is trading between $27 and $28 as it consolidates before the next leg higher. At 11am PT today, Silver is trading at $27.27 per ounce, down $0.41 on normal volume.