Inflation more than "expected"... Not the driving factor tonight I don't think.
Subprime lender Novastar implosion... Thats what is driving the Gold (Au) + Silver (Ag) market tonight, at least thats the reason silver bugs like me will buy silver tonight.
Subprime lenders going bust = credit crunch
Credit crunch = Fed flooding the market with liquidity (FFMWL)
FFMWL = more money driving Gold and Silver up out of fear
Yet... Yen is still pretty weak right now. Who is going to win the race to devalue quickest... Fed or the Bank of Japan I wonder.