After hovering around even for a majority of the day on Monday, bargain-hunting buying is driving the spot values of gold and silver upward. With very few new inputs making their way to the market, and the ongoing crisis in Ukraine only growing more bleak, it seems as though interest in gold and silver is on the rise, again.
US economic data due to be released on Tuesday is light and not expected to push spot gold or silver too far in any direction.
All Eyes Still On Ukraine
Only a week ago, the tensions in Ukraine, and specifically Crimea, seemed to have been noticeably calming down. It seemed that cooler heads were prevailing and that leaders from Russia, Ukraine, and the West were going to settle matters diplomatically. Then, seemingly out of nowhere, the parliament of Crimea voted unanimously for their region to rejoin the Russian Federation. Despite the interim government of Ukraine disagreeing wholeheartedly, the Crimea region of Ukraine looks as if it will become the newest addition to Russia. In fact, in about 5 days' time the citizens of Crimea will be participating in a vote similar to that taken part in by their parliament.
With that being said, however, the vote seems to be nothing more than symbolic as it is expected that the majority of ethnic-Russians residing in Ukraine will decide to rejoin the Russian Federation, just like their parliament did.
Over the weekend, eyewitness and video testimony show that pro-Russian militias were moving further into the Crimea region. These forces have reportedly stormed and subsequently taken over a number of buildings and compounds along the way, instilling fear into the citizens of Crimea who oppose a Russian takeover.
As this situation evolves and progresses, we will continue to keep a close eye on it due to the simple fact that a boiling over of tensions into an armed conflict will undoubtedly have some sort of impact on spot gold and silver. Though most parties involved, including Russia, are looking to avoid military escalation in Crimea, there is no saying whether or not this situation will be resolved peacefully.
Economic data due for release out of the United States today includes the weekly Johnson Redbook and Goldman Sachs retail sales reports. Barring any shocking numbers, this data is not expected to have any major impact on the US marketplace.