Gold and silver spot values are edging lower to close out what has been an uneventful and somewhat negative week for metals. This weekend will be a particularly long one for UK and US investors as they are taking the day off on Monday to celebrate the Memorial Day holiday. Despite the undeniable fact that plenty of investors will be out enjoying the sun and weather this week, they will not want to take their eyes off of what is going to be taking place in Europe this weekend.
As it stands, investors are exhibiting a more risk-averse attitude, but that has so far not meant much of anything for precious metals spot values. Instead, the US Dollar and US bonds are taking up a large portion of investor interest which is visibly weighing on the spot values of gold and silver.
Investors Hold Positions Ahead of A Busy European Weekend
As has been the case for the last few months, investors are continuing to concern themselves with anything and everything that is happening in Ukraine. Despite tensions taking a tick downward over the past week or more, presidential elections expected to be held this weekend may shift things around a bit. At this juncture, investors are not readily basing their investing decisions upon the events in Ukraine as there is no way of telling what direction it will be headed in by this time next week. On one hand, this weekend’s elections could provide a spark that would increase violence across the country, but, on the other hand, an elected leader who chooses to seek a peaceful resolution to the crisis could see spot values end up pegging themselves in a lower range than what we have been seeing lately. Still, as has been the case for the past two months or more, the crisis in Ukraine remains wholly unpredictable.
In other news from Europe, citizens across the continent will be anxiously awaiting the results of the most recent parliamentary election. The election results are due out sometime this weekend and will be particularly interesting as there has been a growing anti-EU sentiment amongst the candidates. This anti-EU feeling is doing well to boost bond yields from periphery European economies. With that said, however, rising bond yields are threatening the value of the euro currency, which has been falling all week long. As a result of the declining euro, the US Dollar has had room to make impressive gains and is now sitting at a more than 1.5 month high. As you could have probably guessed, the rising Dollar is doing a good job of keeping the spot values of metals subdued.
Though Monday is expected to be quiet due to the celebration of the Memorial Day holiday, it will be interesting to see how this weekend’s proceedings affect the spot values of gold and silver.