Strong U.S. Dollar Rally Drives Precious Metals Lower

GOLD

The Fed’s favorite inflation measure, personal consumption expenditures price index, rose 0.2% for July in line with expectations. This is up 2.6% from a year ago, slightly softer than the 2.7% estimate. But a strong rally in the U.S. Dollar Index has caused gold to break the key $2,500 support level.

At 11am PT today, Gold is trading at $2,498 per ounce, down $27 on light volume.

SILVER

Silver dropped with the Gold price, breaking below the $29 support level on light trading volume.

At 11am PT today, Silver is down $0.70 per ounce, trading at $28.80 on light holiday weekend volume.