The CPI Climbs 6.2% Causing Precious Metals To Rise

GOLD

The Consumer Price Index (CPI) vaulted 6.2% from a year ago, decidedly higher than the estimated 5.9%. This is the largest annual increase since 1990. On a monthly basis, the CPI increased 0.9% against the 0.6% estimate. This caused equity markets to drop a couple hundred points and Gold to jump $35, reaching a high of $1,869 per ounce. This is the breakout I have been waiting for, and a move to $1,900 is coming soon. At 11am PT today, Gold is trading at $1,850 per ounce, up $16 on excellent volume.

SILVER

On the CPI inflationary news and the dramatic move in the Gold pirce, Silver broke above the $25 per ounce resistance level, reaching a high of $25.20 per ounce. At that level we saw profit taking which pushed the price down below the $25 level. At 11am PT today, Silver is up $0.32 per ounce, trading at $24.71 on excellent volume.