Posted on May 12, 2014
Gold Spot Price Open: $1,289
Gold Spot Price Close: $1,296
Change in Gold Spot Price: +$7
Silver Spot Price Open: $19.22
Silver Spot Price Close: $19.61
Change in Silver Spot Price: +$0.39
Gold and silver made some positive gains on Monday after what proved to be a tense weekend in Ukraine. When all was said and done on Monday, gold gained about 7 dollars while silver picked up nearly 40 cents.
The main focus of most every investor once markets opened today was the events that took place in Ukraine over the weekend. While clashes between pro-Russian separatists and the Ukrainian military carried on, the main focus was on a referendum vote that was scheduled to take place yesterday. Despite Russian president Vladimir Putin calling for the rebels to postpone the vote, it carried on regardless.
Pro-Russian rebels have claimed that the Donetsk region of Ukraine is now “independent”, and that they will continue to pursue actions in order to officially break away from Ukraine and potentially join the Russian Federation. As you might have expected, Ukraine’s standing government refuses to recognize the vote and claims that its military will continue to fight to eradicate the Pro-Russian “terrorists.” This weekend’s proceedings have done well to bring back some safe-haven buying of physical gold and silver. What’s more, some market analysts are claiming that physical buying of metals has picked up in Asia too, something that we have not seen for a few months.
As we look forward to the week ahead, investors have very little outside of the crisis in Ukraine to talk about. With that in mind, however, the marketplace will more than likely focus on the elections in India as they will probably have some impact on spot values. The BJP party in India seems to be favored to win the upcoming election, something that would be beneficial for precious metals seeing as they are more friendly to imported gold than the current governing body.