U.K. Announces Highest Inflation In Three Decades

GOLD

During early European trading, a report was released by the UK government that the current inflation rate is the highest it’s been in three decades, which set off the precious metal markets. Gold quickly rallied from a low of $1,811 to $1,830, and kept on going when the U.S. markets opened. Gold rallied $30 per ounce, reaching a high of $1,844 (1.65%) before seeing some light short-term profit taking. At 11am PT today, Gold is trading at $1,845 per ounce, up $28 on excellent volume.

SILVER

Like I have said numerous times, inflation news will affect the Silver price more than Gold. On the UK inflation news, Silver reached a high of $24.28 per ounce, up $0.78 (3.3%), before seeing some light short-term profit taking. Demand was very strong for physical Silver, as the price broke above the key $24 per ounce resistance level. At 11am PT today, Silver is up $0.70 per ounce, trading at $24.26 on excellent volume.