Gold and silver were headed south Wednesday morning. The U.S. Labor Dept. reported that October’s consumer price index (CPI) fell,  while the core inflation rate — minus food and energy — rose just 0.1%, and Germany and France clashed over increasing the European Central Bank’s (ECB) role in resolving the euro zone debt crisis.

Spot gold was down 1.3% 10 a.m. Wednesday, while spot silver was more than 2% lower. Shares of NovaGold Resources (AMEX:NG) spiked higher as the company announced it would form a new firm, NovaCopper by spinning off its Alaska Ambler mining project and distributing shares to existing shareholders. Management will also try to sell all or part of its 50% share of the Galore Creek copper project in northwestern British Columbia, according to a company news release.

Overall U.S. CPI reversed course and fell 0.1% in October after rising this spring, the Labor Dept. reported. In Europe, France was pushing for the ECB to take greater action and support core euro zone government bonds, including its own, while Germany continued to oppose such an initiative.

Spot gold was bid at $1,757.70, with an ask price of $1,758.70, down sharply from its morning reference price fixing, having traded as high as $1,775.10 and as low as $1,753.50. The London morning reference price was set at $1,773 an ounce, according to Kitco market data.

Spot silver was bid at $33.85 with an ask price of $33.95. The morning high as of time of writing was $34.48, and the low was $33.49. Monday’s reference price was set at $34.45 an ounce in the London a.m.

Gold and silver trusts were heading south early Wednesday.

• The SPDR Gold Trust (NYSE:GLD) was around 1.35% lower.
• The iShares Gold Trust (NYSE:IAU) was around 1.5% lower.
• The iShares Silver Trust (NYSE:SLV) was down around 2.5%.

Gold and silver mining ETFs were showing sharp losses.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was down some 1.1%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was between 1.6% and 1.8% lower.
• The Global X Silver Miners ETF (NYSE:SIL) was more than 1.6% lower.

Shares of gold and silver miners were moving lower, except NovaGold Resources, whose shares were showing double-digit morning gains following news that management was spinning off its Ambler gold project and would try to sell its Galore Creek copper project.

• Agnico-Eagle Mines (NYSE:AEM) was around 1.1% lower.
• Barrick Gold (NYSE:ABX) was showing losses of between 1.5% and 1.6%.
• Goldcorp (NYSE:GG) was down over 1%.
• Newmont Mining Corp. (NYSE:NEM) was some 1.6% lower.
• NovaGold Resources was surging higher, up more than 12.3%.

Silver miners’ shares were showing losses as well.

• Coeur d’Alene Mines (NYSE:CDE) was around 1.8% lower.
• Hecla Mining (NYSE:HL) was down between 1.35% and 1.6%.
• Pan American Silver (NASDAQ:PAAS) was some 0.7% lower.
• Silver Wheaton (NYSE:SLW) was some 1.4% lower.
• Silver Standard Resources (NASDAQ:SSRI) was down around 2.9%.

As of this writing, Andrew Burger did not own a share in any of the aforementioned stocks.