Gold Prices Finish May Up 3.1 Percent

Even with the massive correction in the third week of May, gold prices rose for the fifth day in a row, and in May have increased by 3.1 percent.

Gold prices Friday added another $1.11, or 0.1 percent, ending the day and week at $1,214.14.

For the month of May, gold prices rose $36.24, and for the year are up 10.9 percent, or $118.81.

Even if the sovereign debt crisis in Europe hadn't happened, the economic conditions would have still been right for gold to have continued on its upward run, but now with that enormous threat hanging over the market, it should spur it on even more, possibly at quicker rates than expected, depending on how the crisis unfolds.

Fitch Ratings just downgraded Spain debt from AAA to AA+, generating more concern, which should cause investors to pour more money into gold to protect their capital.