Gold and silver are experiencing mixed results as of midday on Tuesday but are feeling noticeable pressure from technically-related selling. This is the second consecutive day this week where technical selling has outperformed the safe-haven demand stemming from the ongoing violence across Ukraine. Though there have been few new developments from Ukraine since last week, tensions across the country are as high as ever. The US recently imposed more financial sanctions on Russian individuals and companies, but these have so far failed to alter the way in which Putin is handling the turmoil in Ukraine.
What's more, over the weekend it was reported that as many as 7 western military observers were taken hostage in one of Ukraine's eastern cities. Also over the weekend, it was reported that the governor of Kharkiv was shot in the back by rebels who oppose his rule. There is still no saying how the crisis will be brought to an end, but many people are beginning to believe all non-violent means of settling differences have more or less been exhausted.
Heavy Slate of Economic Data Due Out This Week
There is a number of major economic reports due out this week, most of which will be coming from the United States. On Wednesday, the latest Gross Domestic Product numbers will be made public and will see investors mull over that data as well as the outcome of this week's FOMC meeting, which kicked off today. It is widely expected that the FOMC will decide to further reduce Quantitative Easing, but it is unlikely that a further reduction will have any major impact on the marketplace. The most heavily anticipated piece of data due out this week is without a doubt Friday's US Labor Department job's report. If job growth from April exceeds market expectations we can expect that precious metals will feel even more selling pressure. On the other hand, however, weaker than anticipated jobs figures will likely help give spot gold and silver a boost from something other than safe-haven demand alone.
With regard to economic reports from elsewhere around the globe, Thursday is expected to yield a key manufacturing report from China. Recent economic reports from China have done little in the way of impressing investors and have instead only served to increase worries with regard to a stagnating Chinese economy.
In addition to all this economic data, investors and the world alike will continue to keep a close eye on any and all developments in Ukraine. As the Russian military builds up its presence along its border with Ukraine, the threat of violence seems to grow with each passing day.