Gold and silver spot values are edging lower on the final day of what has been a forgettable trading week. Investors in the United States and United Kingdom are gearing up for a long weekend and despite the growing risk-averse attitude of worldwide investors, precious metals are still feeling plenty of downward pressure.
The crisis in Ukraine has now deescalated to some extent, but is liable to blow up again at any point in time. This Sunday will see Ukrainian citizens take to the polls in order to place votes for the next official president of the country. Russia, specifically Vladimir Putin, has said that they will respect the vote, but that much remains to be seen. Pro-Russian rebels are still riddled throughout the eastern and southern parts of the country and are more than likely going to do everything in their power to disrupt the elections.
Investors Hold Positions Heading Into A Long Weekend
Normally, risk-aversion on the part of worldwide investors would be enough to drive the spot values of gold and silver forward. This time, however, such is not the case as investors anxiously await the results of both the Ukranian and EU elections. The EU elections are especially important to investors who have witnessed a growing number of anti-EU candidates compete for parliamentary positions. This growing anti-EU sentiment is translating into higher bond yields in many countries across Europe while also hurting the euro currency.
As a result of the falling value of the euro currency, the US Dollar has surged forward and is now progressing towards its most elevated position in nearly 2 months. If investors continue to be more interested in US bonds and the US Dollar, I feel safe saying that precious metals will have a hard time advancing forward. As it stands now, gold and silver are approaching a weekly loss for the first time in a few weeks, despite interest in the metal still being described by many as being strong. Once US markets open up again on Tuesday,