Gold and silver are both trading around even but are feeling noticeable downside, technically related, selling. The crisis in Ukraine is still catch a lot of the marketplace’s attention, but this week, unlike last one, will bring with it a number of factors that will more than likely distract investors, at least momentarily. Despite investor worries with regard to the possibility of increased violence over this past weekend, the level of violence has not done much in the way of changing. What has happened however, has done little in the way of decreasing tensions as more than 5 western military observers were taken hostage by pro-Russian rebels in Ukraine’s east.
What’s more, the governor of Kharkiv was reportedly shot by another group of rebels. The armed militiamen have been making it a point to prove their presence in Ukraine over the last few weeks. What first started out as the relatively peaceful takeover of buildings and towns has no evolved into total anarchy in many cities across Ukraine. The US has imposed more sanctions on Russians individuals and businesses, though these sanctions have done little in the way of changing how Russia is handling the situation in Ukraine.
Week’s Worth of Economic Data
From a US economic data standpoint, this 5-day trading session is gearing up to be the busiest we have seen in weeks. On Wednesday, the investing world will prepare itself for the latest Gross Domestic Product report from the United States. Adding to this will be the Labor Department’s employment report for April, of which is expected to yield more positive numbers with regard to the nature of employment in the United States. If this week’s US economic reports go as expected, it is likely that they will put even more downward pressure on precious metals.
In addition to the plethora of US economic reports due out this week, the Federal Open Market Committee is also meeting until Wednesday. It is expected that we will hear of another reduction to Quantitative Easing, though this is old news as far as investors are concerned.
Finally, this week will be completed as far as economic data is concerned once we talk about the manufacturing report due out of China on Thursday. Recent Chinese economic data has painted a picture of an economy that is slowly but surely stagnating and failing to keep up the impressive performance we have grown accustomed to. Weak manufacturing data more often than not tends to work against precious metals spot values.
