The CPI Had The Largest Monthly Gain Since September 2005

GOLD

The Labor Department reported today that the consumer price index (CPI) surged 1.2% in March, the biggest monthly gain since September 2005. In the past 12 months through March, the CPI has accelerated to 8.5%. That was the largest year-on-year gain since December 1981 following a 7.9% jump in February. It was the sixth straight month the annual CPI was over 6%. Well, that’s the type of news that is bullish for precious metals and today we saw that reaction. With interest rates and the U.S. Dollar Index setting new record highs, Gold ignored that and rallied sharply on the CPI news. Gold reached a high of $1,979 per ounce before seeing some light profit taking. At 11am PT today, Gold is trading at $1,970 per ounce, up $22 on excellent volume.

SILVER

It was reported today that Gasoline prices on average soared to an all-time high of $4.33 per gallon in March, according to AAA. While gasoline was the main driver of inflation last month, food and services, such as rental housing, also made strong contributions. This inflation news drove the price of Silver above the key $25 resistance level, to a high of $25.71 today. At 11am PT today, Silver is up $0.52 per ounce, trading at $25.40 on solid volume.