PPI Report Shows Increased Inflation as Precious Metals Continue to Dip

GOLD

The June Producer Price Index (PPI) was reported this morning, showing an incredible increase of 11.3%, due primarily to higher energy costs. This news, combined with the U.S. Dollar Index reaching another new high over 109 was the perfect combination to drive precious metal and commodity prices lower. Gold briefly broke below the $1,700 level and quickly rallied back on heavy buying. At 11am PT today, Gold is trading at $1,709 per ounce, down $19 on heavy volume

SILVER

Silver followed Gold lower after the release of the June PPI numbers and the strength in the U.S. Dollar Index. Silver reached a new 2022 low of $18.13 before finding bargain buying. The recent decline in the Silver price is in line with many other commodities, not an inflation hedge precious metal. At 11am PT today, Silver is down $0.68 per ounce, trading at $18.36 on heavy volume.