Gold and silver are both feeling heavy selling pressure through midday on Wednesday as a result of remarks made by both Janet Yellen and Vladimir Putin. Tensions in Ukraine are still extremely high, but president Putin’s remarks may have shed some light on how the situation will be brought to an end.

As it stands, gold is well below the $1,300 threshold while silver is suffering so much so that it is approaching $19/ounce. If the rest of the week pans out how most investors are expecting it to, with little economic data to talk about, it is likely that precious metals will continue to feel strong selling pressures.

Remarks By Putin, Yellen Do Their Best To Derail Metals

The crisis in Ukraine has been in and out of the headlines for the better part of two months now and the violence and unrest seems like it will never be brought to an end. Just this past weekend reports streamed in claiming that the Ukrainian military was advancing on pro-Russian rebels who have taken up positions throughout Ukraine’s eastern and southern regions. Since these operations commenced less than a week ago, the death toll is in the multiple dozens and is only growing.

Today, however, the world may have gotten its first glimpse at how the violence in Ukraine will be put to an end. In a public speech, Vladimir Putin said that he is willing to discuss possible peaceful ends to the violence and that pro-Russian forces in Ukraine’s east should postpone a vote that would, in essence, give another large part of Ukraine to Russia. It is still too early to tell if Putin really means the words he spoke today, but the market seems to already believe him as safe-haven demand for precious metals took a considerable hit earlier this morning.

Also working against precious metals today was a speech made by president of the Federal Reserve, Janet Yellen, to the Congressional Joint Economic Committee. In her remarks she made it clear that her and the rest of the Fed think the US economy is growing in strength and has nowhere to go but up throughout the remaining 7 or so months of the year. She also stated that interest rates will have to remain low for a “considerable time”, a remark that flies directly in the face of the widely held opinion that interest rates were going to be risen by Spring of 2015. In all, gold has fallen by almost a whole percentage point today and is continuing to feel selling pressure as we head towards the day’s end. If the week carries on and few new inputs make their way to the marketplace it is very likely that gold and silver spot values will fall even further than they have already.

Gold and silver are both continuing to feel downside technical selling pressure, despite this morning’s 1st quarter GDP report coming back weaker than expected. The situation in Ukraine is continuing to catch a lot of the market’s attention, but is slowly but surely being overshadowed by the plethora of economic data making its way to the headlines this week. Apart from the GDP report today, investors are also concerning themselves with the conclusion of the latest FOMC meeting, which is expected to happen sometime this afternoon. The market will more than likely react to what Janet Yellen has to say in her post-meeting statement, but that much remains to be seen.

Economic Data Just Heating Up

Though this week is expected to be a busy one from an economic data standpoint, most of that data is not due out until this afternoon through Friday. The United State’s 1st-quarter GDP report was made public earlier this morning, but what it had to say was that GDP growth so far this year has been marginal, at best. The GDP report showed that year on year growth from January to March had only improved by .1%, a number that is in stark contrast to the 1%+ growth expectations from the marketplace. It was widely expected that a low GDP report would yield an increase in precious metals spot values, but such has not been the case as a majority of the marketplace is holding their positions until the Fed has concludes their meeting.

If the FOMC decide to further taper Quantitative Easing, spot gold and silver may not see any gains as a result of the weaker GDP report. At this point in the early afternoon, it is difficult to determine just how the FOMC is feeling about the economy and whether or not they think further tapering is the right decision to make.

As we look ahead, there is a bit of key Chinese manufacturing data due out on Thursday. As a result of recent pieces of economic data from China being poor at best, the investing world will be interested to see what this latest report on China’s manufacturing data has to say. Finally, Friday is when the US Labor Department’s latest jobs readings are due out. It is expected that we will see more than 200,000 non-farm payrolls added to the economy during April, but no one is holding their breath. As it stands, the duration of this week is gearing up to be fairly exciting.

Gold and silver are hovering around even but are looking marginally stronger to start the day on Wednesday. A few key PMI readings from China and the EU were due out today and what they had to say did not at all surprise the marketplace. US economic data for the week has thus far been fairly quiet and will more than likely remain that way throughout the duration of the week.

The situation in Ukraine has deescalated for now but is far from being completely out of the picture due to its volatile nature. The weekend yielded a supposed agreement between the United States and Russia which will see them work together to bring about a peaceful resolution to the crisis in Ukraine. As it stands there are still a number of armed militiamen that have seized buildings and towns across the eastern half of Ukraine and they are not going to simply lay down their arms. It will be interesting to see how the situation develops over the next few weeks and what it will mean for the future of the country and eastern Europe in general.

PMI Reports Bring Little Surprise

The first and most heavily anticipated PMI report due out today was China’s manufacturing PMI reading for April. Compared to a reading of 48.3 in March, April’s PMI yielded a slightly lower 48.0 reading. Any reading below 50 suggests contraction in that particular sector of the economy. Despite China’s PMI being lower than it should, their manufacturing output is still the envy of most of the world. Still, the fact that China’s economy has been inching along for the past few months is unnerving to countless investors.

The EU was greeted with a few upbeat PMI readings early on Wednesday, including a .3 improvement in the EU’s services PMI, moving from 52.2 in March to 52.5 in April. The EU;s manufacturing PMI reading saw a similar improvement with a reading of 53.3 in April versus 53.0 in March. The EU’s PMI reading only confirms what the market has been witnessing over the last few months, and that is a healthy, growing EU economy. While the situation in Ukraine has done little to help the progress of the EU’s economy, many are expecting to see similarly positive growth through the foreseeable future.

Gold and silver spot values are attempting to stabilize themselves on Wednesday after both metals experienced hefty losses a day ago. Rising tensions in Ukraine are driving safe-haven demand for gold, but a boatload of other factors are keeping precious metals from making any significant gains. For example, early today yielded a few US economic reports, all of which bested market expectations.

While there is no denying that interest in precious metals is beginning to pick up, other factors are preventing them from capitalizing on this renewed interest.

Violence In Ukraine Increases

Little more than a week ago, the crisis in Ukraine was flying under the marketplace’s radar and was more or less being ignored by a majority of investors. The reason for this was simple, a lack of violence and unrest made investors more readily focus on other, more pressing issues. More recently, however, pro-Russian demonstrators and militiamen have made their presence known along Ukraine’s eastern border with Russia. These pro-Russian paramilitaries stormed buildings, towns, and airfields over the course of the past two weeks. Now, the Ukrainian military is forcibly ousting them from the buildings in which they are occupying. Yesterday saw a few skirmishes break out along the eastern border, an event which many think may boil over into a larger-scale conflict.

If Russia steps in in defense of these Russian nationalists in Ukraine, there is no saying where the crisis will head. As it stands, the investing world is keeping a close eye on anything and everything developing out of Ukraine’s east. Russia has been silent on recent matters, but many believe that silence will be broken soon in one way or another. Gold and silver, as morbid as this sounds, have responded positively to the pick-up in violence and are being helped out by a renewed interest in safe-haven gold and silver. Having said that, the metals’ spot values are not partaking in much upward movement thanks to a few things working against them.

Wednesday’s Upbeat US Economic Data

There were a few US economic reports due out today, highlighted by the industrial production report for March. Much to the relief of many investors, industrial production in the United States was up by nearly 1% in March. This positive report helped give the US Dollar more strength and is more than likely the main reason behind why precious metals cannot seem to move upward.

As it stands, gold is sitting just barely above the $1,300 threshold while silver fell down below $20/ounce a day ago and is still hovering below that mark, despite marginal AM gains. As the day plays out it will be interesting to see if physical gold and silver purchases as a result of rising tensions in Ukraine will be able to lift spot values.

Precious metals were able to post sharp gains on Tuesday, but are now feeling a bit of a corrective pullback just a day later. Last week’s weaker than anticipated US jobs report for March as well as recent news of additional unrest in Ukraine spiked interest in gold and silver on Tuesday, but things have pulled back a little bit as the market now anxiously awaits the FOMC minutes, due out today.

Currently, gold is still sitting above the $1,300 threshold, though silver has fallen back below $20 in the early hours of Wednesday.

FOMC Minutes Prove Vital

Only a week ago, investors were anxiously awaiting the release of March’s non-farm payrolls data. After members of the Fed very recently touted the strength of the US employment sector, the market was anticipating that March’s payrolls data would be particularly strong. As is too often the case, however, the jobs data fell short of the 206,000+ market expectations and instead showed that only 192,000 jobs were added to the economy last month. While 192,000 news jobs being added to the economy is nothing to scoff at, investors were discouraged to see this batch of data fall short after Janet Yellen and James Bullard both spoke so positively about US job growth.

As a result of the weaker US jobs data, investors are more fervently paying attention to today’s FOMC minutes. Over the past few months the FOMC minutes have consistently proven to move the market, and this time will likely not be any different.

In other news, the situation in Ukraine is back on the forefront of the marketplace’s attention after a recent spike in unrest throughout the country. At this juncture, a growing number of people are beginning to fear the possibility of a Ukrainian civil war. Recent unrest has not amounted to the type of violence we saw only a month or so ago, but investor are paying attention anyway. As has been the case for the past month or more, we will continue to analyze the crisis in Ukraine for any further developments.

After more than 6 consecutive trading sessions in which they posted losses, precious metals were finally able to rebound a bit on Wednesday. Spot gold is still below the $1,3000 threshold, but has inched closer during the first half of the day.

This week will continue to be busy from an economic data standpoint, but the two most important events of the week will not take place until Thursday and Friday respectively. On Thursday, the European Central Bank is scheduled to have their monthly policy meeting, after which Mario Draghi is expected to address the media. Due to the rising occurrence of deflation worries across the European Union, some investors are expecting to see more monetary stimulus come as a result of this week’s meeting.

On Friday, US and world investors will be greeted with the latest non-farm payrolls data from March. There is no saying how many jobs were added last month, but recent remarks from members of the Fed have much of the market convinced that payroll additions were healthy in March.

This Week’s Economic Data

US economic data for the week has thus far not pushed spot gold and silver too far in any direction. While most of it has been upbeat, no reports released this week have beaten expectations so drastically that it had any impact on gold nor silver.

While the market is most heavily anticipating Friday’s payrolls data from March, Wednesday marked the release of the ADP employment report for March. The ADP report showed that about 191,000 jobs were added in March; a number that fell slightly short of expectations. Regardless, the news was taken as a positive after the last few months have emitted nothing but downbeat data.

Bargain hunters were able to drive spot gold and silver upward today, but in reality the market is really just holding until the payrolls data on Friday. For many, this week’s payrolls data will be a very telling sign of just how strong the US economy currently is. If Friday’s report beats market expectations by any margin, expect spot gold and silver to come falling right back down. Few bullish factors have made their way to the marketplace over the past few days and that, more than anything, is what is driving the spot value of gold downward. It will be interesting to see if the latter half of the week will bode any better for precious metals.

Gold and silver are trading lower for a third consecutive day this week, adding to losses compiled last week. It seems as though precious metals’ rally is now done and dusted, though we are only one development in Ukraine away from seeing safe-haven demand shoot right back up to levels it was at a little more than a week ago.

Barclays revised their forecast for spot gold today, though their revision still sees the spot value of gold drop below current levels by the end of the year. The fact that Barclays predicted spot gold to decline from where it is at currently does not do anything to aid the current outlook on precious metals.

Quiet Week Thus Far Working Against Gold and Silver

Gold and silver have continued along last week’s downward trend thus far this week. We have seen few major market developments and the economic data that was released had little impact on the marketplace. The lack of any fresh bullish data combined with the fact that the overall outlook on metals is becoming bleaker by the day is hurting spot gold and silver significantly.

Yesterday, James Bullard announced that he is continuing to see improvement in the US economy and that he also expects the overall unemployment rate fall below 6% sometime before the end of 2014. This only adds credence to the belief that QE will be done away with by the end of the year and that interest rates in the US may be risen as soon as this time next year.

Thanks to the lack of news this week, investors are focusing more readily on the monetary policies being employed by central banks around the world. Recently worrisome financial and economic data from China have a large majority of investors preparing themselves to see some change in Chinese monetary policy, though it is not clear what type of change is expected. Currently, most agree that the Chinese central bank needs to loosen its current monetary policy in an attempt to stimulate the economy. Ever since the beginning of the year the Chinese have given us disappointing report after disappointing report with regard to their economy. At first, the succession of dismal reports was attributed to nothing more than a temporary lull in the Chinese manufacturing sector, but now, more than 3 months later, the only news we are seeing out of China remains as poor as it was in January.

The strength or weakness of the Chinese economy is of particular importance to gold and silver investors for the sole fact that the Chinese are the largest consumers of gold and silver on an annual basis. Because of this, their buying or lack thereof of precious metals heavily influences the spot value of said metals.

After spending a majority of last week reeling in gains, spot gold and silver have done nothing but lose value during the first three days of this week. With tensions calming down in Crimea and the FOMC likely to announce another round of tapering, precious metals are simply not receiving much of any good news from anywhere.

Worries with regard to the Chinese economy and financial system are still being tossed around the marketplace, but today have had little effect on the upward trend of US equities. The investing world is anxiously awaiting Janet Yellen’s first post-FOMC meeting press conference, though it is not expected that she will deliver any groundbreaking news.

FOMC Meeting Steals The Spotlight

This week’s FOMC meeting was met, as it usually is, with a fair deal of speculation regarding what decisions, if any, the Fed was going to make in light of recent US and Chinese economic data. Though most people agree that the outcome of today’s meeting will see Quantitative Easing tapered by another $10 billion, others are not so sure that this will be the case. US economic data has been sub-par recently, one of the many factors prompting some market analysts to believe the Fed is pulling away easy money at too fast of a pace.

Janet Yellen’s first press conference as Chair of the Fed is another reason investors are going to be tuning in for the conclusion of the FOMC meeting. Because she is still new to the position, investors and market analysts are jumping at any opportunity to hear her insights and thoughts with regard to the economy and monetary policy.

As it stands, it is not looking like spot gold or silver stand to benefit an any significant capacity as a result of today’s Federal Reserve activity. If anything, the outcome of the FOMC meeting and subsequent press conference by Janet Yellen may end up working against precious metals.

Financial Worries In China Unnerve Investors

Last week yielded some shocking news from China in the form of its first corporation in history going into default on bond payments. Today, last week’s report is being complemented by a rumor that yet another Chinese corporation went into default on bond payments. While this second report has not yet been confirmed, it is definitely adding to the sense of uneasiness investors are feeling towards the Chinese economy as of late.

Finally, it is now somewhat official that Russia has annexed the Crimea region of Ukraine. While this annexation has not been met with the violence many expected to see, it is still a tense situation nonetheless. The EU and US have threatened to impose sanctions on Russia and specific Russian citizens, though these have not really been taken seriously by anyone involved.

Spot gold and silver are trading significantly higher on Wednesday as safe-haven buying and the overall outlook on precious metals continues to improve. Tensions in the Crimea region of Ukraine continue to rise as video and eyewitness reports are claiming that pro-Russian forces are moving further into the disputed region.

US economic data for this week is light which means that investors are already beginning to speculate with regard to the outcome of next week’s FOMC meeting.

Tensions In Ukraine Fueling Demand For Gold And Silver Again

After the world witnessed a sudden and rapid deescalation of tensions in the southern Crimea region of Ukraine last week, it was looking increasingly like this entire crisis would be resolved through diplomatic means. Unfortunately, however, that belief was quickly dealt a blow over the weekend after a mounting number of reports indicate that pro-Russian militias are moving further into the region via helicopter, armored vehicle, and by foot. Along the way there have been numerous reports of these same forces storming specific buildings and compounds and subsequently ushering the occupants out. Though there have been no reports of gunfire or widespread violence, the tensions alone are palpable.

In only 5 days’ time the citizens of Crimea will take part in a referendum, or vote, to decide whether the majority of people in Ukraine wish to remain part of Ukraine or rejoin the Russian Federation. Last week the parliament of Crimea voted unanimously to rejoin Russia and it is expected that the referendum will yield similar results. Though president Barack Obama and a number of other world leaders have condemned Russia’s supposed influence and hand in the matter, it is looking more and more like Crimea will soon be the newest addition to the Russian Federation.

The increased military presence and threat of violence in the near future is driving the spot values of gold and silver upward as investors once again are seeking safe-haven assets. After declining slightly towards the end of last week, spot gold and silver have rebounded early today and now see spot gold hovering near a half-year high. Only time will tell if these gains can be sustained, though it is becoming increasingly difficult to argue with the notion that precious metals are moving themselves into a more favorable position for investors.

In other news from around the world, there were mixed economic reports released out of the EU in the early morning hours, though none of it had any major impact on the worldwide marketplace. Recent EU data has been upbeat and is falling in line with projections that see EU economic growth beating out most other regions of the world this year.

Gold and silver are trading slightly up during the first half of Wednesday as both metals are fighting a renewed appetite for risk. With the situation in Ukraine noticeably more stable today than it was on Monday, investors no longer feel it a huge necessity to look to safe-haven assets to protect their wealth.

Today’s non-farm employment data from February came in and surprised a few investors, but was really not too far from market expectations. As we look forward to the end of the week, investors and the world will be paying close attention to how things develop in Ukraine.

Non-Farms Data Disappoints…Slightly

For yet another month, the non-farms data disappointed in that it came back weaker than market expectations. The report indicated that only about 139,000 jobs were added in February, about 11,000 fewer than the 150,000 addition that was expected by the market. This news helped push gold and silver forward, but only slightly.

Today, investors are showing an increased appetite for risk as the situation in Ukraine continues to calm down. There are talks scheduled to take place in Paris and the hope is that this entire debacle can be put to rest through words and diplomacy rather than by the use of force. Still, Russia has thousands of troops deployed on the ground in Ukraine’s Crimea region and despite Western calls for a withdrawal, Russia remains defiant. Though Putin and his colleagues have continually stated that Russian ground troops’ presence is necessary for the protection of Russian-speaking Crimeans, the West is not too quick to buy into this.

After posting hefty losses on Tuesday, gold and silver are attempting to gain ground today. With that being said, however, improving US equities are making it very difficult for precious metals to make any sort of substantial gains.

In other news from around the world, Chinese officials have announced that they plan on targeting 7.5% annual growth for their economy this year. This number is a lot higher than original forecasts and is a bullish factor for precious metals as China is the world’s largest consumer of gold and silver on an annual basis. With that being said, recent Chinese economic data has been sub-par and market analysts hold that it will take a massive improvement in the coming months for the world’s second-largest economy to even come close to their expectation of nearly 8% annual growth this year.