For a second consecutive day gold and silver are hovering around even to slightly lower in the early morning hours of Thursday. Despite safe-haven demand being at fairly high levels over the course of the past week or so, the market is maintaining a more bearish posture which is preventing safe-haven demand alone from boosting spot values too much. In all reality, higher safe-haven demand is likely preventing gold and silver spot values from taking the downward trajectory you would normally expect amid an a market atmosphere as bearish as the one we are witnessing at present.
Crisis In Ukraine Just Heating Up
In light of recent happenings along Ukraine’s eastern border with Russia, minsters from the US, Ukraine, Russia, and the EU are meeting in Geneva, Switzerland in an attempt to deescalate what are now soaring tensions. Over the course of the past few days there have been countless reports streaming in claiming that armed pro-Russia militiamen were taking over buildings, towns, and airfields throughout the eastern half of the country. Even as early as this morning there were new reports of these same militiamen taking control of Ukrainian military armored vehicles.
The military of Ukraine was recently dispatched in order to oust these demonstrators but have so far experienced little success. While there is no reason to believe that Russia will involve itself militarily, there are many people who think such a turn of events is inevitable as Russia will more than likely come to the aid of its supporters in Ukraine. As we head into the Easter weekend most market analysts are expecting to see an increase in demand for physical gold and silver as the risk-off attitude amongst investors grows.
Apart from the ongoing developments out of Ukraine, there is not much else on the collective minds of investors. European equities were trading lower today after their recent rally and were seeing even more selling pressure as a result of rising tensions in Ukraine. Should the bearish technical posture of the market dissipate by the time markets open next week, gold and silver spot values may finally be given a boost from safe-haven, risk-off buying.