Gold and silver made modest gains on Thursday but are still below key resistance levels. Safe-haven demand for metals was finally able to give spot values a boost after having failed to do so for more than a week now. Things are becoming increasingly tense in Ukraine and while the US and Russia are supposed to be working towards a peaceful solution to ongoing disputes, that much remains to be seen.
Also helping precious metals on Thursday was the fact that US equities conceded some of their recent gains. Slightly weaker equities reduced the selling pressure that has been plaguing gold and silver over the last week or more.
Tensions In Ukraine Take A Swing Upward
It’s been no secret that tensions and violence in Ukraine have been picking back up recently. Armed militiamen are being met with force by the Ukrainian military all throughout the country’s eastern half. Despite their best efforts, the Ukrainian military is having an incredibly difficult time ousting every last contingent of pro-Russia armed rebels. Yesterday, Russian officials warned that any attacks on pro-Russians in Ukraine would be seen as an attack on Russia itself. For this reason, the Ukrainian military was reported as having backed away from some of its ongoing operations throughout its own country.
A small relapse in the price surge of US equities coupled with recent violence throughout Ukraine has made it possible for spot gold and silver to post the marginal gains they have made today. It is unlikely that safe-haven demand alone will be able to continue to push gold and silver forward, but today’s gains are a good start.
What is really hurting spot values of late is the lack of any new bullish factors making their way to the marketplace. Market bears are slowly taking control and thus making it hard for metals to do anything worth talking about. Many investors are hoping that next week will yield a bit more for them to mull over other than the violence slowly but surely encompassing Ukraine.