EU BAILOUT ULTIMATELY POSITIVE FOR GOLD

by Goldline.com | May 10, 2010

As of 11:28 EST, gold prices regained a level of $1,200 an ounce on the New York Spot Market Monday, as safe-haven purchases continued, despite growing confidence over the global economic recovery based on the weekend's aid deal aimed to protect the EU against sovereign debt default. European leaders agreed early Monday to a rescue plan worth nearly $1 trillion to avoid a major debt crisis. The Federal Reserve said it would also provide loans overseas. As of 11:29, EST, silver was trading slightly higher at $18.51 an ounce on the New York Spot Market.
(The Bullion Desk, 5/10)

Crude oil prices climbed over 3% Monday morning, as global investors reacted to news of the bailout plan for Greece. Gasoline prices fell for the fourth day in a row, slipping to $2.908 a gallon from $2.914 the day before. (CNN Money, 5/10)

U.S. stocks jumped dramatically Monday from Friday's close. The Dow Jones industrial average (INDU) advanced 447 points, or 4.3%, about 10 minutes into the session. The S&P 500 (SPX) gained 49 points, or 4.4%, and the Nasdaq (COMP) added 112 points, or 5% as of 11:29, EST (NYSE).

In an interview Monday with Goldseek, 'Mr. Gold', Jim Sinclair professed his belief that the recent EU bailout package will ultimately send gold and silver prices much higher and that paper currencies are 'headed to dust.' According to Sinclair, 'Regardless of the first knee jerk market reaction, gold is going to $1,650 and beyond due to nuclear suggestions of adding more debt to entities failing because of debt. This is the EU Helicopter Drop coming up.' (Goldseek, 5/10)

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