Bailout accepted by Spain

Gold and Silver prices both opened higher Sunday on the announcement this past weekend that Spain agreed to a $125 billion (American dollars) bailout. The devil is always in the details, and although the details of this agreement are still unknown, both equity and Precious Metals markets have reacted favorably. The money will go to struggling Spanish banks. It is hoped that this infusion of capital will revive Spain’s financial system.

Now that a bailout has been accepted by Spain, the focus will shift to the approaching Greek election. The Greeks will decide Sunday whether they will remain in the European Union, thereby holding together the eurozone. On May 6, elections were held with neither party being able to form a government, so a new election was scheduled for June 17. The pro-bailout New Democracy party is slightly in the lead, but it is still unknown whether that party will be able to form a coalition if it wins the election.

At 9 a.m. (EDT), the APMEX Precious Metals prices were:

  • Gold, $1,595.80, up $4.40.
  • Silver, $28.74, up $0.18.
  • Platinum, $1,454.30, up $27.20.
  • Palladium, $623.00, up $11.00.