Precious Metals Fall After April's PPI Release

GOLD

This morning the U.S. Labor Department released the Producer Price Index (PPI) for April. That index only rose 0.5%, compared to March’s 1.6% increase, but the annual rate has increased to 11%. This news, combined with the U.S. Dollar Index, continued to set new 20+ year highs (near 105) and is putting pressure on the precious metal prices. Gold reached a low today of $1,821 before seeing bargain buying and short-sale covering. At 11am PT today, Gold is trading at $1,824, down $29 on heavy volume.

SILVER

Silver sold-off with Gold this morning, but at a faster rate. Silver reached a low of $20.59 before seeing fresh buying. This is a new 2022 low and an extraordinary value. At 11am PT today, Silver is down $0.90 per ounce, trading at $20.70 on strong volume.