As soon as we thought it was safe to stop talking about it, the situation in Ukraine jumped right back into the headlines early this week. After suffering some marginal losses on Monday, both gold and silver spot values are trading sharply higher and are both above key resistance points. Now, as the week progresses, investors will be actively trying to figure out if the situation in Ukraine is going to grow into a wider conflict or if this is simply an isolated instance of demonstration by scattered pro-Russian Ukrainians.
In other news, the IMF announced that they predict the UK to be the leading economy out of the G-7 economies. Officially, the IMF is expecting to see nearly 3% economic growth during both this year and 2015.
Demonstrations, Flare Ups In Ukraine
Though nothing major happened in Ukraine over the last few days, a number of media outlets are confirming that pro-Russian demonstrations are continuing to pop up all over the country. While Ukrainian security forces are doing their best to dispel the protesters, many feel as though Ukraine might be on the verge of a civil war. For this reason and many more, safe-haven demand for gold and silver has shot up quite a bit during the early morning hours of Tuesday. We will continue to monitor the situation in Ukraine in order to see how it develops over the next few days and just what those developments might mean for the precious metals market.
Also helping gold and silver on this quieter Tuesday is a declining US Dollar Index. As is typically the case when the greenback takes a dive, gold and silver have capitalized and are both sitting on the upbeat side of key resistance price levels. Currently, silver is trading over $20/ounce while gold has once more eclipsed the $1,300 threshold. If the last few days' worth of price action is any indication how the rest of this week will shape up, it is no guarantee that spot gold and silver will retain today's early gains.
Economic data for this week is light and will more than likely have little to no impact on the precious metals market. Investors are still reacting to last week's weaker than anticipated jobs report for March, but most have moved on to address more pressing investing matters.