Gold and Silver Edge Higher After Spain Bailout
It was a quiet day for both precious metals, despite the developments in Europe over the weekend. Spain become the latest euro member to request a bailout, which may total as much as 100 billion euros ($125 billion) for the country’s banking system.
“The 100 billion euros is the number that we were looking for so I’m cautiously optimistic,” Olly Burrows, credit analyst at Rabobank International, told Bloomberg. “We still have to find a solution to the sovereign debt crisis: it’s not done yet and we still have to press on with the task of uniting Europe.” Any relief investors were expecting from the bailout package was short lived. Equities turned lower in Monday morning trading and interest rates in Spain and Italy continued upward.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased .25 percent, while the iShares Silver Trust (NYSEARCA:SLV) traded flat. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) fell .97 percent and .57 percent, respectively. Silver names Coeur d’Alene Mines Corp. (NYSE:CDE) and Silver Wheaton (NYSE:SLW) both fell more than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS