Gold and Silver Edge Higher After Spain Bailout

On Monday, gold (NYSEARCA:GLD) futures for August delivery increased $5.40 to settle at $1,596.80 per ounce, while silver (NYSEARCA:SLV) futures edged 15 cents higher to close at $28.62.

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.

Don’t Miss: The Fed Reserve Whispers Sweet Nothings to Gold and Silver

“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.

Follow us   Follow @IBTimesUK

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.

Investor Insight: David Einhorn Mocks Warren Buffett’s Stance on Gold

If you would like to receive professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS