Gold and Silver are both trading sharply higher this morning as the problems out of Europe continue to grow. Yesterday the European Central Bank and the International Monetary Fund announced a $1 trillion bailout program for the European banks holding debt in the PIIGS. This caused a sharp rally yesterday and slight decline in gold. Today the smoke and euphoria of that bailout has cleared and it is viewed by many investors that growth in Europe will be very poor in the foreseeable future.
This morning the SPDR Gold Shares (NYSE:GLD) is trading sharply higher by $1.88 to $119.40. Spot gold is higher by nearly 22.00 points to $1222.00. The Ishares Silver Trust (NYSE:SLV) is also trading higher this morning by $0.56 cents to $18.68.
Silver is viewed by many traders as an alternative way to play the gold action. Generally when gold rallies silver will follow.
