Gold and silver are moving in opposite directions but are both hovering around even for the day. The opposite, yet marginal movement shown by both gold and silver today is indicative of the conflicting reports that have been surfacing lately. On one hand, there is a decent amount of things to talk about from the crisis in Ukraine, on the other hand, investors are reacting to today’s upbeat US economic data.
As the week wears on investors will continue to keep a close eye on all the latest developments stemming from Ukraine’s east.
Crisis In Ukraine Back In the News as Tensions Soar
Early last week the marketplace was greeted with news of rising tensions and unrest in Ukraine. After the situation had calmed down in the latter stages of March, investors were more or less ignoring what was happening in the large Eastern European country. This week, however, increased tensions have boiled over into violence as the Ukrainian military was given the go-ahead to forcibly remove pro-Russian militants from towns, buildings, and other locations which they have occupied over the last few weeks.
Just yesterday, in the eastern Ukrainian town of Kramatorsk, Ukrainian military personnel were seen jumping out of helicopters and storming an airfield that had been taken over by these rebels. The military made quick work of the relatively unorganized militiamen but are still far from completely dispelling the pro-Russian rebels from the eastern part of the country. As the Ukrainian military is seen taking action against pro-Russian rebels, the market is wondering just how Russia will respond, if they respond at all. Regardless of this, safe-haven demand for gold and silver are receiving a boost from increased tensions.
In other news, the latest industrial production numbers for the US were released today. The report showed that industrial production in the United States has risen by nearly 3% since February and was up by .7% in March alone. This news, as you might have expected, boosted the US Dollar and in turn made it difficult for precious metals spot values to really capitalize on any of the increased interest they are seeing as a result of the situation in Ukraine.