Spot gold and silver are both trading sharply lower on Tuesday, thanks to a host of factors working against metals. Despite tensions in Ukraine being back on the rise, safe-haven demand has stepped aside, at least for now, and has allowed other assets to gain value. Though safe-haven demand is not in the marketplace today, there is a strong likelihood that it will pick back up sometime later this week, especially once spot values are driven down past key resistance levels.
US and world economic news for the week is expected to be light in comparison to what we have seen the last few weeks. With that said, however, it is worth mentioning that March's retail sales report for the United States came back just ahead of market expectations. This news did not have any real impact on spot gold nor silver but it served as a piece of valuable information for investors.
Gold Being Driven Down, At Least For Now
Just a day ago spot gold and silver seemed to be in fairly decent positions, both sitting above key resistance levels. Now, however, both gold and silver spot values are trading sharply lower in the wake of profit-taking and a technical correction after late last week and Monday's decent gains. What's more, the US Dollar is trading sharply higher as of the last few days, an occurrence that almost always puts downside pressure on gold and silver.
Despite the undeniable fact that spot gold and silver are being hit pretty hard today, factors surrounding the marketplace make it hard for investors to believe that this type of downward pressure will last throughout the remainder of the week. With tensions in Ukraine climbing by the day thanks to additional pro-Russia demonstrations, there is no saying what type of developments we will see over the next few days. The Ukrainian military has given countless demonstrators an ultimatum of either putting a halt to their protest lest they be faced with an armed confrontation. Of course, as fate would have it, the ultimatum deadline has since passed and the Ukrainian military has taken no real action against the demonstrators. As time passes by, however, the military of Ukraine may be forced into taking action against the mostly unarmed demonstrators; a move that would surely anger Russia.
As you can plainly see, there is plenty for investors to mull over with regard to Russia and Ukraine. Despite gold and silver spot values making an unexpected downward turn, it is likely that rising safe-haven demand will do something to augment today's losses.