U.S. Interest Rates & U.S. Dollar Index Moved Lower Today

GOLD

Both U.S. interest rates and the U.S. Dollar Index is starting to move lower today and precious metals are reacting to that drop. This news combined with yesterday’s startling Consumer Price Index increase took the Gold price to $1,982 per ounce in early trading. We are definitely back on the path to $2,000 per ounce, with a possible test of the $1,950 level for the last time. At 11am PT today, Gold is trading at $1,980 per ounce, up $10 on good volume.

SILVER

As the world reacts to yesterday's accelerated CPI increase to 8.5%, demand for Silver is growing fast. As I have said before, Silver will be the biggest beneficiary of higher inflation numbers. Silver reached a high today of $25.90 before seeing some light selling. At 11am PT today, Silver is up $0.40 per ounce, trading at $25.80 on excellent volume.