Gold climbed on Monday, on news Saturday that Eurozone finance ministers will help bailout Spain’s banks’ lending 100 billion euros ($125 billion). This helped strengthen the euro and riskier assets, and hurt the dollar.

This action drove US gold futures up 1.1% to $1,609.30 for August delivery. It saw money managers increase their US gold futures up 27% to 98,426 contracts in the week ended Jun 5th, the biggest jump since September 2009.  Silver longs also climbed up 1/3 to 6,549 contracts from 4,912 the previous week.  Spot silver reached a daily high of nearly 2% to $29, before edging down to $28.89.

The loan to Spain will actually bring the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are added.

EU politicians are again attempting to portray Spain’s €100 billion ‘bailout’ as a victory.

From Goldcore:

Today’s AM fix was USD 1,593.00, EUR 1,264.79, and GBP 1,023.45 per ounce.
Friday’s AM fix was USD 1,576.00, EUR 1,264.34, and GBP 1,021.72 per ounce.

Silver is trading at $28.67/oz, €22.92/oz and £18.52/oz. Platinum is trading at $1,448.00/oz, palladium at $618.00/oz and rhodium at $1,200/oz.

Gold rose $3.00 or 0.19% on Friday in New York and closed at $1,594.60/oz.  Gold traded sideways in Asia and is hovering above $1,590 in a narrow range in Europe this morning.



Spanish Prime Minister, Mariano Rajoy, watches  Euro 2012 group C match between Spain & Italy- Photograph: Jasper Juinen/ Getty Images (Gdansk, Poland)

Gold climbed on Monday, on news Saturday that Eurozone finance ministers will help bailout Spain’s banks’ lending 100 billion euros ($125 billion). This helped strengthen the euro and riskier assets, and hurt the dollar.

This action drove US gold futures up 1.1% to $1,609.30 for August delivery. It saw money managers increase their US gold futures up 27% to 98,426 contracts in the week ended Jun 5th, the biggest jump since September 2009.  Silver longs also climbed up 1/3 to 6,549 contracts from 4,912 the previous week.  Spot silver reached a daily high of nearly 2% to $29, before edging down to $28.89.

The loan to Spain will actually bring the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are added.

EU politicians are again attempting to portray Spain’s €100 billion ‘bailout’ as a victory.

It is nothing more than another short term misguided panacea and a mere sticking plaster on the gaping terminal hole as only the Eurozone debt crisis could.

“Money printing on this scale has only ever been good for precious metal prices by historical precedent. The bank bailouts are an example of money creation at the source with banks able to lend more against this new capital injection and sterilising bad debts,” comments Peter Cooper.

Risk has again been shifted from insolvent banks to increasingly insolvent sovereigns. While equities have rallied, the robust gold price is an indication that market participants remain dubious.

  1. Once again the bankers come to the rescue of bankers.  This $125 billion is pocket change. If it buys 2 weeks this morons will be lucky.  And who will get the money?  Which bank and how much.  The decision making process will take longer than the evolution of the entire universe.

    The present day Spanish   bad loans total at least $400 billion, 40% of $1 trillion   Total Spanish debt is $2.25 trillion.  By comparason, Greece got bailed out to the tune of $400 billion to repair $250 billion in bad loans and hair cut. that  means it took $1.60 for every dollar of debt to ‘save’ Greece.

      It will take at least $4 trillion in bailouts to destroy, er, ahh   I mean  to save Spain.  That means the US will get involved and that’s our money going down the rat hole.  This whole new Spanish crap fiesta will make the Greeks look like the Special Olympics. 

      Doug Casey said it best.  Humanity will survive because there are more scientists and engineers alive today than in the history of mankind.  The Problem is that there are more bankers alive today than any time in the history of mankind.  95% of all bankers who every lived are alive today.  If we are to be saved there needs to be an extinction-level event in the world of bankers.  IMO

  2. Euro Saved! Dollar Suffers! Gold Up!

    Why must the article site the hurt dollar? Why can’t gold just go up because of the bailout?

    Obviously there are still way too many people with more money than sense.

  3. The only thing that the Bailout will help is the Banksters. Gold and Silver will be held back, Spain will crash and the bankers will have their pockets full and still have all the foreclosed properties they collected. What a shity world we live in.

  4. I have a feeling the populace is waking up. The game is over now. There’s only a few seconds left in the ninth inning, there is no home run hitter with that can win the game for the banksters. Bases are loaded and Casey’s at bat, but silver is up by 5 runs. A grand slam does no good. somebody post the “Rocky Mountain Way” video since I still can’t seem to do it.

  5. There just kicking the can again… And sticking it to the working man… They see people doin bad so they give a bail out to the very shiesters that caused a good portion of the mess to begin with… WTF… How many times they gonna do this before they realize it doesn’t work… Stooges…

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