Gold and silver were trading up to begin the day but have since conceded those gains and are trading slightly lower. There are very few pieces of economic data on the slate today, something that is not hurting precious metals but definitely not helping them either. The crisis in Ukraine will more than likely absorb the marketplace for the next few days as a referendum that will decide the fate of another part of eastern Ukraine is scheduled to take place on Sunday.
It is more than likely that the only talk circulating around on Monday will be with regard to what happened in Ukraine over the weekend. Safe-haven demand was initially driving spot values forward today, but it has since faded into the background and is being overridden by more technical selling pressure.
Crisis In Ukraine Completely Envelops The Marketplace
Though a number of geopolitical and economic events have taken over the marketplace’s attention this week, those will more than likely fade into the background over the weekend. Violence between the Ukrainian military and pro-Russian rebels has been raging all week and has accounted for dozens of deaths. Vladimir Putin, earlier this week, made remarks claiming that he is willing to pursue peaceful means to resolve the crisis in Ukraine. What’s more, Putin went on to call upon pro-Russian rebels to refrain from holding the referendum, which is scheduled for this Sunday.
If the referendum does, in fact, take place, it is more than likely that another large portion of eastern Ukraine will be handed back over to Russia. Safe-haven demand is most definitely still a factor for investors, but it is currently being overshadowed by technical selling pressure. As it stands, gold is sitting more than $10 below the $1,300 threshold while silver is still sitting well below the $20/ounce.
Also catching the attention of investors this week was Janet Yellen’s addresses to Congress on both Wednesday and Thursday. In her remarks Ms. Yellen made it clear that she is feeling positive about the US economy and that interest rates will more than likely remain at current levels for the foreseeable future. This was good news for investors who were under the impression that interest rates were going to be risen as early as next Spring.