Precious metals began the day on Tuesday in upbeat positions due to increased tensions in Ukraine. Seeing as this week is expected to remain extremely slow and mostly devoid of any noteworthy pieces of economic data, it is only natural that the attention of the marketplace shifts elsewhere.
With that said, there was a minor piece of economic data released out of Germany today, one that had a positive impact on the spot values of precious metals. However, as the day wore on, metals cooled off a bit and, as of the writing of this post, were not too much ahead of where they began the day.
Activity in Europe Gives Metals a Boost
US equity markets were seen declining across the board on Monday due to renewed worries with regard to the situation in Ukraine. This time around, Kiev is growing increasingly uneasy about a Russian humanitarian convoy making its way into war-torn parts of Ukraine in order to provide aid to people who are without food and medical supplies. Though, on its face, it seems as though Russia is making a good effort to provide food and help for those in need, Ukrainian officials feel as though this is nothing more than a Russian Trojan Horse. The overriding fear is that these humanitarian convoys aren't humanitarian at all, but rather, a means to smuggle weapons and supplies into Ukraine without incident.
As it stands, Ukrainian officials are claiming that they will not allow the convoy to cross the border. With a standoff in the makings, the investing world has nothing to do but look on with horror. As you could have probably guessed, the renewed and continuously escalating tensions in Ukraine only serve to dismantle the confidence of the marketplace. Even before US markets opened, European equities as well as the Euro currency were trading downward. This continued through much of the day as there was really little else for investors to talk about.
In other news out of Europe, it was reported early this morning that investors and analyst confidence in the EU economy tanked in Germany this month. More than the situation in Ukraine was seen as worrisome for investors, because the diminished morale also came as a result of Europe's slow, and sometimes stagnating road to economic recovery. This year has thus far not boded too well for the EU economy, and it is looking as though things might stay that way for some time to come.