ForexTV.com reports price of gold is at ease with the rescue plans for the ailing banks.

“Gold has continued to hold above $825/oz while silver has held above $10.00/oz,” he wrote. “This suggests that some investors may view recent banking system developments as potentially inflationary which may continue to support long-term bullish trends in precious metals.”

As part of its bailout plan, the U.S. Treasury announced on Tuesday that it will purchase as much as $250 billion in preferred shares of financial institutions, insure all non-interest bearing deposits and guarantee senior bank debt. The plan involves buying senior preferred shares that are non-voting and callable after three years.

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