After posting somewhat decent gains on Wednesday, spot values are trading lower as we edge near the end of the day on Thursday. There was some economic data on the table but amid a risk-off atmosphere such as we have been seeing lately it is a bit peculiar that metals have declined the way they have today. Investors are continuing to pay attention to the crisis in Ukraine but there have been very few new developments thus far this week. As it stands, gold is once again back down below the $1,300 mark while silver is still struggling below the $20/ounce threshold.
Today’s Economic Data Works Against Precious Metals
Heading into this week it was looking much more likely that investors would be concerning themselves with the crisis in Ukraine as opposed to any of the limited number of economic reports that were made public. Today, however, proved to defy expectations as investors very heavily focused on every piece of data that was made public.
It was reported today that the number of weekly jobless claims was at record lows, something the market was not expecting at all. US consumer prices didn’t do much moving, but what little movement they partook in was more beneficial for the US Dollar than it was for precious metals. It wasn’t only gold and silver who were feeling pressure today either, as most raw commodities were seen trading lower as a result of the day’s US economic data.
Still, market analysts are confused at why investors are exhibiting a more risk-on attitude all of a sudden. Some are attributing the changing attitude to the possibility of new monetary stimulus in Europe, but even this doesn’t make much sense as such a move is likely more than a month away, if it is even going to actually be made. Now, as we head into the last day of the week and into the weekend, it will be interesting to see if gold and silver will benefit from safe-haven demand again or if they will continue to be grouped in with the declining raw commodities sector.
Investors will also be paying incredibly close attention to anything and everything happening in Ukraine over the weekend. Though violence has not gotten too much worse this week, the situation is still far from resolved and seems as though it is going to deteriorate further before it begins to get any better.