The days of growing gold and silver over the doubt in Ukraine has come to a finish. At least, for
now. Gold prices are down 1.4% today at $1,317/Oz. That was adding onto last
week’s 3.1% drop.
Silver prices are not faring much better today. Silver futures
are sliding 0.7$ at $20.17/Oz.
While gold is still up extra than $100/Oz on the year, it
has pulled back hugely over the past week or so. What caused the tough pull
back? A variety of factors.
First, the situation in Ukraine has stabilized rather in
Wall Street’s eyes. Current developments in the region show Russian and
pro-Russian forces storming Ukrainian military bases in the Crimea. So far,
clashes have been kept to a small amount. Still, it will only take one headline
out of the region to send the gold spiking higher.
Additional factors include improving financial data. Some
pieces of financial data have been rotating around in recent weeks. The Fed’s choice
to narrow another $10 billion is also bearish for gold and silver. This has led to an intensification of the U.S.
dollar over the history four days, which has weighed on precious metals.
Financial data releases will be watched intimately today. In
particular, March’s PMI manufacturing index released in the after that few
minutes. Today’s PMI index will be the closing reading for March.
Money Market Manthan Financial Services
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